ALSO READInstitutional investors put in bids worth Rs 9.76 bn in NMDC disinvestment NMDC Q2 net rises 10% to Rs 844 cr on higher income Govt to divest 1.5% in NMDC on Tuesday at Rs 153.5 per share NMDC stake sale via OFS route begins; stock falls 4% Higher volumes to cushion NMDC, risks to pricing remain
The government's 2.52 per cent stake sale in state-owned miner NMDC saw a robust response from investors with the retail portion getting over-subscribed by 5.40 times on Wednesday. The two-day offer for sale (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 NSE data. Institutional investors 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 NMDC 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 NMDC closed at Rs 155.30, up 0.45 per cent, to BSE. 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.