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Nalco stake sale fully subscribed, retail buyers outbid

LiveMint logoLiveMint 20-04-2017 PTI

New Delhi: The government’s first PSU stake sale in the current fiscal—National Aluminium Company Ltd (Nalco)—got off to a solid start, with retail investors putting in bids for up to 1.81 times the shares on offer. Over 1.93 crore shares were offered to retail buyers on Thursday.

The offer for sale (OFS) opened to institutional investors yesterday, wherein foreign fund houses and domestic institutions bid for 1.84 times the shares on offer. The share sale got bids for Rs954 crore and the government will retain full over-subscription under the greenshoe option.

The greenshoe option is a special provision which allows sale of more shares than originally planned by the issuer. Of its total holding of 74.58% in Nalco, the government is offloading 5%, or over 9.66 crore shares, at a floor price of Rs67, which was estimated to yield about Rs640 crore. Over 1.93 crore shares have been reserved for retail investors, who will also be offered 5% discount over the issue price. Retail investors are defined as individuals who place bids for sales of total value of not more than Rs2 lakh in aggregate. The stock was trading at Rs68.45, up 1.03% over its previous close, on the BSE.

Nalco is the first disinvestment of the current fiscal, which started on 1 April. For this fiscal, the government has set a target of Rs46,500 crore through minority stake sale and Rs15,000 crore from strategic disinvestment. In 2016-17, the government had raised over Rs46,247 crore from disinvestment. PTI

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