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Institutional investors put in bids worth Rs 9.76 bn in NMDC disinvestment

Based on the response from institutional buyers, however, it has decided keep the issue size at 2.52 per cent, according to a finance ministry official

Press Trust of India  |  New Delhi 

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A broker monitors share prices while trading at a brokerage firm in Mumbai. (File photo: Reuters)

put in bids worth Rs 9.76 billion on Tuesday for buying government's part stake in state-owned miner NMDC.

The government had originally planned to sell 1.5 per cent stake in the company, with a green-shoe option to retain an equal quantum.

Based on the response from institutional buyers, however, it has decided keep the issue size at 2.52 per cent, according to a finance ministry official.

The sale of 2.52 per cent in NMDC by the government after exercising green-shoe option would fetch about Rs 12 billion to the exchequer.

FIIs and have bid for over 63.6 million shares — 1.68 times of the 37.9 million shares reserved for them, according to the NSE data.

At the floor price of Rs 153.50 apiece fixed by the government, bids for over 6.36 crore shares by institutional buyers would fetch Rs 976 crore to the exchequer.

The two-day offer for sale (OFS) will open for retail investors tomorrow.

The closed at Rs 154.70, down 4.42 per cent, on BSE.

The government has already raised over Rs 525 billion in the current fiscal through stake sale in PSUs, including listing of insurance PSUs and exchange traded fund.

It has set an ambitious target of raising Rs 725 billion for disinvestment in the current fiscal. Of this, Rs 465 billion is to be raised through minority stake sale in PSUs and Rs 150 billion from strategic sale. Another Rs 110 billion is to come from listing of insurance companies.

First Published: Tue, January 09 2018. 20:16 IST
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