20 Sep 2017 | 12:55 PM


Govt divests 9.2% stake in NALCO to raise Rs 1200 cr
Published on 04-21-2017
The Government of India has successfully divested 9.2 per cent of paid-up capital in National Aluminium Company Ltd (NALCO) to raise Rs 1200 crore to begin FY 18 with a bang said the Finance Ministry in a release.

The Ministry of Finance said in a statement that the Department of Investment and Public Asset Management (DIPAM) Ministry of Finance GoI is set a record target of realizing Rs 72500 crore via disinvestment. This follows an all-time high achievement of Rs 46247 crore during 2016-17.

Initially the disinvestment in NALCO OFS was pegged at 5 per cent of paid-up capital but seeing the overwhelming response from the market DIPAM exercised the green shoe option to retain over-subscription and raised the offer to 9.2 per cent.

Post the said transaction the government’s stake in NALCO dropped to 65.37 per cent.

Meanwhile if the original OFS offer of 5 per cent is considered the issue is over-subscribed by 2.56 times and if the revised offer of 9.2 per cent is taken the issue is subscribed 1.43 times the release added.

Further the green shoe option (over-subscription option) was used by the Government for the first time since the modified OFS procedure spanning 2 days (T and T+1 day) was put in place by SEBI in 2016.

Meanwhile shares of the company closed at Rs 66.90 apiece down 1.76 per cent from previous close on the BSE.