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Govt sells 9.2% stake in Nalco, raises Rs 1,200 cr

Press Trust of India  |  New Delhi 

The today raised over Rs 1,200 crore through the sale of 9.2 per cent stake in Nalco as both retail and institutional investors lapped up the offered to them.

The first PSU disinvestment of the current fiscal, Nalco also saw the exercising the option to retain excess subscription, called greenshoe option.

The had hit the market yesterday with 5 per cent on offer, and exercised the greenshoe option after seeing investor demand on day one of the offer for sale.

With bids, over 1.84 times the on offer, the subscription of institutional investors was valued at Rs 954 crore. Retail investors on their part bid for 3.17 times the reserved for them valued at Rs 250 crore.

Together, the bids are valued at over Rs 1,200 crore.

Of its total holding of 74.58 per cent in Nalco, the has offloaded 9.2 per cent at a floor price of Rs 67.

Department of Investment and Public Asset Management (DIPAM) Secretary Neeraj Gupta said the was confident of retail investor demand and hence had exercised the greenshoe option keeping in mind the last four disinvestments.

"Today's response validates our market assessment," Gupta said.

The OFS opened for retail investor subscription today and was lapped up 3.17 times. Retail are defined as individuals who place bids for sales of total value of not more than Rs 2 lakh in aggregate and are offered 5 per cent discount over the issue price.

The Nalco stock closed at Rs 68.10, up 0.52 per cent over its previous close, on BSE.

National Aluminium Company Ltd (Nalco) is the first disinvestment of the current fiscal, which started on April 1.

The has set a target of Rs 46,500 crore through minority stake sale and Rs 15,000 crore from strategic disinvestment in 2017-18.

In 2016-17, the had raised over Rs 46,247 crore from disinvestment.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, April 20 2017. 17:33 IST