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
19 April, 2018 22:57 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
Prism Cement is now Prism Johnson - 19-Apr-2018 15:51
NACL Ind enters into strategic alliance with BioWorks - 19-Apr-2018 15:25
Ramco Systems partners with L3 MAS - 19-Apr-2018 15:21
MCX inks pact with Northern India Textiles Mills' Association - 19-Apr-2018 15:16
BP and Reliance sanction second phase of integrated KG D6 development - 19-Apr-2018 13:45
IndusInd Bank Q4 profit grows 27% to Rs 9.53 bn - 19-Apr-2018 13:40
Reliance Infra wins EPC contract worth Rs 7.74 bn - 19-Apr-2018 12:07
WABAG secures Rs 2.53 bn order under Namami Gange scheme - 19-Apr-2018 11:39
UltraTech Cement commissions new plant in Madhya Pradesh - 19-Apr-2018 11:33
Vascon Engineers receives work order worth Rs 1.19 bn - 19-Apr-2018 11:27
Magma Fincorp raises Rs 5 bn through QIP route - 19-Apr-2018 10:15
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