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NMDC retail portion OFS fully subscribed; govt to fetch Rs 12 billion

The sale of 2.52% in NMDC at a floor price of Rs 153.50 per share will fetch about Rs 12 billion to the exchequer

Press Trust of India  |  New Delhi 

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The government's 2.52 per cent stake sale in state-owned miner saw a robust response from investors with the retail portion getting over-subscribed by 5.40 times on Wednesday.

The two-day (OFS) opened for retail subscription today. Over 85.8 million bids came in for 15.9 million shares reserved for them, representing 5.40 times over-subscription, according to the data.

had yesterday put in bids for over 63.6 million shares - 1.68 times of the 37.9 million shares reserved for them.

The sale of 2.52 per cent in at a floor price of Rs 153.50 per share will fetch about Rs 12 billion to the exchequer.

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, the government decided to keep the issue size at 2.52 per cent.

Shares of closed at Rs 155.30, up 0.45 per cent, to

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

It has set an ambitious target of raising Rs 725 billion for disinvestment in the current financial year.

Of this, Rs 465 billion is to be raised through minority stake sale in PSUs and Rs 150 billion from the strategic sale. Another Rs 110 billion is to come from the listing of insurance companies.

First Published: Wed, January 10 2018. 18:14 IST