Nalco stake sale attracts Rs 954 cr worth bids on day 1

 PTI   New Delhi     Last Updated: April 20, 2017  | 09:00 IST
Nalco stake sale attracts Rs 954 cr worth bids on day 1

The first PSU disinvestment of the current fiscal took off on a strong note, with the NALCO share sale attracting bids worth Rs 954 crore on strong demand from HNIs and institutional buyers.

The share sale attracted bids for over 14.24 crore shares as against 7.73 crore offered to institutional investors, an over-subscription of 1.84 times, according to the stock exchange data. Most of the bids came at Rs 67.03 per share, slightly higher than the floor price of Rs 67. At this price, subscription of over 14.24 crore shares could fetch over Rs 954 crore.

"The government will retain full over-subscription under the greenshoe option," a finance ministry official said. Of its total holding of 74.58 per cent in Nalco, the government is selling 5 per cent or over 9.66 crore shares at a floor price of Rs 67. The two-day stake sale could fetch about Rs 640 crore to the exchequer.

Over 1.93 crore have been reserved for retail investors who will also be offered 5 per cent discount over the issue price. Retail investors are defined as individuals ones who place bids for sales of total value of not more than Rs 2 lakh in aggregate.

However, Nalco scrip closed 7.76 per cent lower over previous close of Rs 67.75 on the BSE. National Aluminium Company Ltd (Nalco) is the first disinvestment of the current fiscal, which began on April 1.

For this fiscal, the government has set a target of Rs 46,500 crore through minority stake sale and Rs 15,000 crore from strategic disinvestment. In 2016-17, the government had raised over Rs 46,247 crore from disinvestment.

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