NLC Divestment: Institutions bid for Rs 1,000 cr worth shares

The government's stake sale in NLC India today got to a flying start with institutional investors putting in bids worth over Rs 1,000 crore.

Through the two-day OFS, The government is selling 3 per cent stake in NLC (formerly Neyveli Lignite Corp) with a green-shoe option to retain additional 2 per cent over subscription.

At a floor price of Rs 94 a piece, sale of 5 per cent stake would fetch about Rs 800 crore to the exchequer.

The offer for sale (OFS) today opened for subscription by institutional investors and bids for over 11.63 crore shares came in, as against 3.66 crore shares reserved for them.

At the floor price of Rs 94/ 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.

The government has already raised over Rs 19,000 crore through minority stake sale in PSUs in current fiscal. It targets to raise Rs 72,500 crore through PSU stake sale, including strategic sale and listing of insurance PSUs, in 2017-18.