NMDC disinvestment: Institutional buyers offer bids of Rs 976 crore

NLC India | Company resumed mining operations of Neyveli Mines. (Image: nlcindia.com)

Institutional investors put in bids worth Rs 976 crore on Tuesday for buying government's part stake in state-owned miner National Mineral Development Corporation (NMDC).

The government had originally planned to sell 1.5 percent stake in the company, with a green-shoe option to retain an equal quantum.

Based on the response from institutional buyers, however, it has decided keep the issue size at 2.52 percent, according to a Finance Ministry official.

The sale of 2.52 percent in NMDC by the government after exercising green-shoe option would fetch about Rs 1,200 crore to the exchequer.

FIIs and institutional investors have bid for over 6.36 crore shares — 1.68 times of the 3.79 crore shares reserved for them, according to the NSE data.

At the floor price of Rs 153.50 apiece fixed by the government, bids for over 6.36 crore shares by institutional buyers would fetch Rs 976 crore to the exchequer.

The two-day offer for sale (OFS) will open for retail investors tomorrow.

The NMDC stock closed at Rs 154.70, down 4.42 percent, on BSE.

The government has already raised over Rs 52,500 crore in the current fiscal through stake sale in PSUs, including listing of insurance PSUs and exchange traded fund.

It has set an ambitious target of raising Rs 72,500 crore for disinvestment in the current fiscal. Of this, Rs 46,500 crore is to be raised through minority stake sale in PSUs and Rs 15,000 crore from strategic sale. Another Rs 11,000 crore is to come from listing of insurance companies.