In the first disinvestment of a public sector undertaking in the current fiscal, the Centre raised over Rs 1,200 crore via sale of 9.2 per cent share in National Aluminium Company Ltd (Nalco). The government exercised the green shoe option, which is chosen to retain oversubscription of the offer for sale. Originally, Centre had put up 5 per cent of its stake on the block.
“The green shoe option was used by the government for the first time, since the modified OFS procedure spanning two days was put in place by Sebi in 2016,” a finance ministry statement said. The offer for sale received bids for over 1.84 times the shares on offer, with the subscription of institutional investors being valued at Rs 954 crore. Retail investors bid for 3.17 times the shares reserved for them valued at Rs 250 crore. Together, the bids are valued at over Rs 1,200 crore.
Of its total holding of 74.58 per cent, Centre offloaded 9.2 per cent at a floor price of Rs 67. On Thursday, Nalco’s share ended unchanged from its previous close at Rs 67.75 on the NSE.
The government has set itself a target of Rs 72,500 crore from disinvestment of its stake in PSUs during FY18, and it has firmed up plans to sell its stake in seven big-ticket PSUs. Of the total, Rs 46,500 crore is expected from minority stake sale, and Rs 15,000 crore from strategic disinvestment in FY18.