NEW DELHI: The government's 5 per cent stake sale in NLC India got oversubscribed 2.10 times on the final day and the government is likely to raise Rs 750 crore through the disinvestment.
On the last day of the offer for sale (OFS) today, the portion reserved for retail investors was subscribed 2.90 times. These investors bid at Rs 94.60 a share, which was a discount of 3.5 per cent over the cut-off price.
Institutional investors yesterday bid for 3.19 times the NLC shares fixed for them in the OFS, following which the government decided to exercise the green-shoe option.
The government approved disinvestment of 3 per cent shares of NLC (formerly Neyveli Lignite Corporation) as the base offer, with an option to retain oversubscription of up to additional 2 per cent shares.
Overall, the 5 per cent stake was oversubscribed 2.10 times, a finance ministry statement said, adding that the government is likely to raise Rs 750 crore through the disinvestment.
Stock of NLC closed at Rs 97.55, up 3.17 per cent, on the BSE.
Post-disinvestment, the government's stake in NLC will come down to 84.32 per cent.
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.