Stocks

NMDC stake-sale gets thumbs up from investors

Our Bureau New Delhi | Updated on January 10, 2018 Published on January 10, 2018

Retail portion subscribed 5.4 times

The Centre’s stake-sale in state-run NMDC on Wednesday received a thumping response from retail investors who put in bids for 8.58 crore shares on offer, helping raise nearly ₹1,200 crore.

The retail portion of the stake-sale on the second day of the offer-for-sale was subscribed 5.4 times on Wednesday. The Centre had reserved 94.91 lakh shares for retail investors with an oversubscription option of 64.19 lakh shares.

On Tuesday, institutional investors had put in bids for over 6.36 crore shares amounting to ₹976 crore in the OFS.

The government had planned to sell 1.5 per cent of its equity stake in NMDC with a greenshoe option to retain oversubscription of a further 1.5 per cent. In total, the Centre is now selling 2.52 per cent stake in the firm. Retail investors were also offered a discount of 5 per cent on the floor price of ₹153.5 a piece.

The Centre currently owns 74.94 per cent stake in NMDC, which is the country’s single largest iron ore producer.

On Wednesday, its scrip gained 0.45 per cent on the BSE to close at ₹155.30 apiece.

The government has till now raised ₹53,833.05 crore through disinvestment in PSUs.

For the current fiscal, it has set a disinvestment target of ₹72,500 crore.

Published on January 10, 2018
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