Live news , top stories, corporate news, company news, sector news, economy news, results analysis news, ceo interviews, fund manager interview, advisor interview, market news, bazaar talk, hot stocks news, ipo news, commodities news, mutual fund news, insurance news, news wire
29 May, 2017 11:29 IST
NALCO OFS over-subscribed 3 times; Govt to raise Rs 12 bn
Source: IRIS | 21 Apr, 2017, 10.00AM
Comments  |  Post Comment

The Central Government has successfully divested 9.2% of paid-up capital in National Aluminum Company (NALCO) to raise Rs 12 billion to begin FY 2017-18 with a bang. Department of Investment and Public Asset Management (DIPAM), Ministry of Finance, Government of India is set a record target of realizing Rs 725 billion through disinvestment. This follows an all-time high achievement of Rs 462.47 billion during 2016-17.

Originally, the disinvestment in NALCO (Q,N,C,F)* OFS was pegged at 5% 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% on Wednesday,19th April, 2017. With this transaction, the Government of India shareholding in NALCO has come down to 65.37%.

If the original OFS offer of 5% is considered, the issue is over-subscribed by 2.56 times and if the revised offer of 9.2% is taken, the issue is subscribed 1.43 times. 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.

The retail investor continues to back disinvestments of CPSEs by DIPAM. For the fourth time in a row, retail investors out-performed institutional investors. This is particularly satisfying to DIPAM, as one of the objectives of disinvestment policy is to make PSU shareholding broad-based so that nation's wealth is shared by its citizens.

Comments Post comment 
 Post Comment
Name Email
Comment
Security Code type    into this box
Company Update
Reliance Comm swings to loss in Jan-Mar quarter - 29-May-2017 11:01
Tech Mahindra quarterly net drops 33% - 29-May-2017 10:51
Bank of Baroda to raise Rs 90 bn through equity dilution - 29-May-2017 09:58
JSPL completes 6 MTPA integrated steel plant at Angul - 29-May-2017 09:46
Zydus Cadila gets final approval for Acamprosate Calcium Tablets - 29-May-2017 09:41
Glenmark receives final approval for generic version of Bystolic Tablets - 29-May-2017 09:22
Strides Shasun completes USFDA inspection at Bangalore facility with 3 observations - 29-May-2017 09:18
Ashok Leyland turns to profit in Jan-Mar quarter - 26-May-2017 17:40
ITC Q4 profit climbs 12% to Rs 26.69 bn - 26-May-2017 16:50
Maruti Suzuki to start 15 automobile skill enhancement centres - 26-May-2017 11:08
Tata Power Renewable Energy raises Rs 5 bn via NCDs - 26-May-2017 11:00
more...
Home  |   Shares  |   F&O  |   Mutual Funds  |   Loans  |   Insurance  |   News Centre
Wealth Tracker  |   Newsletters  |   Tax Corner  |   NRI Centre  |   Advertise
© All rights reserved. IRIS Business Services Limited
A Disclaimer