The government's 5 percent stake sale in NLC India Ltd. today got off to a flying start, with institutional investors putting in bids worth over Rs 1,000 crore.
Through the two-day offer for sale, the government is selling 3 percent stake in NLC (formerly the Neyveli Lignite Corporation) with a green-shoe option to retain additional 2 percent oversubscription.
At a floor price of Rs 94, the sale of 5 percent stake would fetch over Rs 750 crore to the exchequer.
The offer for sale opened today for subscription by institutional investors and received bids for 11.63 crore shares (or 3.19 times) as against 3.66 crore shares reserved, according to stock exchange data.
“The government accordingly decided to retain the oversubscription by revising the total offer size from 3 percent to 5 percent of equity shares,” a finance ministry statement said.
At the floor price of Rs 94 per share, the bids for over 11.63 crore shares are worth Rs 1,093 crore. Post-disinvestment, the government's stake in NLC will come down to 84.32 percent.
The government has already raised over Rs 19,000 crore through minority stake sale in PSUs in the current fiscal. It looks to raise Rs 72,500 crore through PSU stake sale, including strategic sale and listing of insurance PSUs, in 2017-18.
The share sale will open for subscription by retail investors, who would get a further discount of 3.5 percent, tomorrow.
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