The government's 5 per cent stake sale in NLC India today got off to a flying start, with institutional investors putting in bids worth over Rs 1,000 crore.
Through the 2-day OFS, the government is selling 3 per cent stake in NLC (formerly the Neyveli Lignite Corporation) with a green-shoe option to retain additional 2 per cent over subscription.
At a floor price of Rs 94, the sale of 5 per cent stake would fetch over Rs 750 crore to the exchequer.
The offer for sale (OFS) today opened for subscription by institutional investors.
As against 3.66 crore shares reserved, bids for over 11.63 crore shares -- or 3.19 times -- came in, according to stock exchange data.
"The government accordingly decided to retain the over- subscription by revising the total offer size from 3 per cent to 5 per cent 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.
The share sale will open for subscription by retail investors, who would get a further discount of 3.5 per cent, tomorrow.
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.
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