National Aluminium Company (Nalco) is trading lower by over 3% at Rs 39 after the government received poor response from the investors for its share sale on Friday. The stock is currently trading below its floor price of Rs 40 per share fixed by the government for offer-for-sale (OFS).
The government had put on the block 128.8 million shares, or 5% stake, with an option of selling another 5% in case of over-subscription through OFS. Though the offer was fully subscribed, the government failed to sell an additional 5%.
The government received bids for 156.9 million shares against an offer of 257.7 million shares, including an additional 128.8 million shares under a greenshoe option.
“A merchant banker handling the issue said there wasn’t much demand from foreign investors, given the weak sentiment towards the metal sector,” the Business Standard report suggests.
The stock opened at Rs 40.20 and hit a low of 38.65, its lowest price since November 2008, on BSE. Around 260,000 shares have changed hands on the counter till 1022 hours.
The government had put on the block 128.8 million shares, or 5% stake, with an option of selling another 5% in case of over-subscription through OFS. Though the offer was fully subscribed, the government failed to sell an additional 5%.
The government received bids for 156.9 million shares against an offer of 257.7 million shares, including an additional 128.8 million shares under a greenshoe option.
“A merchant banker handling the issue said there wasn’t much demand from foreign investors, given the weak sentiment towards the metal sector,” the Business Standard report suggests.
The stock opened at Rs 40.20 and hit a low of 38.65, its lowest price since November 2008, on BSE. Around 260,000 shares have changed hands on the counter till 1022 hours.
