Nalco share sale oversubscribed; may fetch Rs515 crore
15 Mar 2013
The offer for sale of Nalaco shares was oversubscribed before the close of market today, helping the government to raise around Rs515 crore ($116 million) from the five per cent shares on offer.
The government sold 5 per cent of the equity of Nalco, comprising 12,88,61,925 equity shares of the face value of Rs5 each at a base price of Rs40 apiece.
Nalco auction received bids for a total of 156.94 million shares, at a weighted average price of Rs40.05, stock exchange data showed. The government's holding in the company will come down to 81 per cent.
The government has the option to sell an additional 12,88,61,925 shares of Rs5 each to take the stake sale to 10 per cent of the total paid-up equity capital of the company as of 15 March 2013.
With the 5 per cent on offer being oversubscribed, the government is expected to trigger additional offer of 12,88,61,925 shares.
The empowered group of ministers headed by finance minister P Chidambaram had, on Wednesday, fixed the floor price at Rs40 a share for the sale of 10-per cent stake in Nalco through auction in two stages as the merchant bankers were skeptic about the response to the offer.
