Govt starts disinvestment with 10% stake sale in Nalco, invites bids for RITES, Rail Vikas Nigam
The Nalco stake sales are expected to raise Rs 1,300 crore. Institutional buyers were bidding for the miner’s shares on the first day of the sales. Retail investors will get a chance to buy the shares on Thursday.business Updated: Apr 19, 2017 21:02 IST
The government began selling up to 10% stake in National Aluminium Company (Nalco) on the stock exchanges on Wednesday, kicking off its ambitious Rs 72,500 crore disinvestment plan for 2017-18.
The Nalco stake sales are expected to raise Rs 1,300 crore. Institutional buyers were bidding for the miner’s shares on the first day of the sales. Retail investors will get a chance to buy the shares on Thursday.
Nalco informed stock exchanges it will sell upto 9.66 crore equity, or 10%, through the offer for sale (OFS) route, meaning the shares will be auctioned in the stock exchanges. The government owns 74.58% in the miner.
Nalco got bids worth Rs 954 crore on strong demand from HNIs and institutional buyers.
The share sale attracted bids for over 14.24 crore shares as against 7.73 crore offered to institutional investors, an over-subscription of 1.84 times, according to the stock exchange data.
The government also invited bankers and legal firms on Wednesday to advise it on disinvesting stakes in Indian railways’ engineering firm, RITES, and Rail Vikas Nigam Limited.
Earlier this week, the government announced that it will disinvest small stakes in seven blue-chip state-run companies--Indian Oil Corp, National Thermal Power Corp (NTPC), Rural Electrification Corp (REC), Power Finance Corp (PFC), Neyvelli Lignite Corp (NLC) and hydro power company NHPC. These sales could raise about Rs 34,500 crore.
The finance ministry is planning to step up disinvestment as it has to spend more on infrastructure and social schemes while cutting the fiscal deficit to 3.2% of GDP in 2017-18, from 3.5% last year.