The NALCO share sale was oversubscribed 1.43 times, with strong participation from both institutions and retail investors, according to a government statement.
The share sale got bids for Rs 954 crore and the government will retain full over-subscription under the greenshoe option. Over 1.93 crore shares were offered to retail buyers on Thursday.
The greenshoe option is a special provision which allows sale of more shares than originally planned by the issuer. The share took a bearish mood and may trade in negative territory owing to the development that the government will open the first divestment account with 10% account sale in NALCO and may mop up Rs 600 crore. The two-day stake sale could see the exchequer garnering around Rs 640 crore.
Department of Investment and Public Asset Management (DIPAM) secretary Neeraj Gupta said the government 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". The green shoe option (over-subscription option) was used by the Government for the first time, since the modified OFS procedure spanning 2 days (T and T+1 day) was put in place by SEBI in 2016.
National Aluminium Company Ltd is now trading at Rs 68.85, down by Rs 4.6 or 6.26% from its previous closing of Rs 73.45 on the BSE.
The Central Government has successfully divested 9.2% of paid-up capital in National Aluminum Company Ltd. (NALCO) to raise Rs. 1,200 crore to begin FY 2017-18 with a bang.
For the current fiscal, the government has set a cash mop-up target of Rs 46,500 crore from minority stake sales and Rs 15,000 crore from strategic selloffs. This follows an all-time high achievement of Rs. 46,247 crore during 2016-17.
This is published unedited from the PTI feed.
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