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
27 July, 2017 02:19 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
Yes Bank Q1 earnings jump 31.9% to Rs 9.65 bn - 26-Jul-2017 16:11
MBL Infra selects Welspun Ent as sponsorer for two projects - 26-Jul-2017 13:43
Hero Motocorp quarterly net rises 4% - 26-Jul-2017 10:57
TD Power Systems bags order for supply of traction motor components - 26-Jul-2017 10:24
Cipla in partnership with MMV launches quality-assured RAS - 26-Jul-2017 10:19
Suzlon wins 50.40 MW overseas wind power project - 26-Jul-2017 09:50
Aurionpro's arm inks pact with HPE for powering Isla - 25-Jul-2017 13:21
Unichem gets ANDA approval for Losartan Potassium, Hydrochlorothiazide tablets - 25-Jul-2017 13:18
Zydus Cadila gets final nod from USFDA for Mesalamine tablets - 25-Jul-2017 13:14
Ambuja Cements quarterly net up 12% - 25-Jul-2017 10:23
Ratnamani Metals bags two new orders worth Rs 3.39 bn - 25-Jul-2017 10:14
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