Nalco share sale gets under way, stock slips 6%

By Rob 0

New Delhi: The PSU disinvestment for the current fiscal year took off on Thursday, with 5% stake sale in Nalco, which could fetch about Rs640 crore to the exchequer.

Of its total holding of 74.58% in Nalco, the government is selling 5% or over 9.66 crore shares at a floor price of Rs67. The floor price is at a discount of 8.78% over the previous closing of Rs73.45.

The two-day offer for sale (OFS) began on the bourses on Wednesday with over 7.73 crore shares being sold to institutional investors. Over 1.93 crore have been reserved for retail investors who will also be offered additional discount over the issue price.

Retail investors are defined as individual ones who place bids for sales of total value of not more than Rs 2 lakh in aggregate.

As of 10.15am, as against 7.73 crore shares offered to institutional buyers, bids came in for over 9.40 lakh shares, as per data available on the NSE.

The share sale on Wednesday will continue till close of the market.

In the secondary market, the Nalco scrip is trading at Rs68.95, down 6.13%, on the BSE. In morning trade, the scrip had touched a low of Rs68.30. Nalco is the first disinvestment of the current fiscal, which began on 1 April

For this fiscal, the government has set a target of Rs46,500 crore through minority stake sale and Rs15,000 crore from strategic disinvestment.

In 2016-17, the government had raised over Rs 46,247 crore from disinvestment.

First Published: Wed, Apr 19 2017. 11 18 AM IST