20 Sep 2017 | 12:55 PM

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Govt divests 9.2% stake in NALCO to raise Rs 1200 cr
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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.