NLC India OFS over-subscribed 5 times; institutional buyers put in Rs 4,158 crore bids

New Delhi: The Government's offer for sale of up to 3 percent stake in NLC India got over-subscribed on the first day of the share sale with non-retail investors putting in bids worth Rs 4,158 crore.

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On Tuesday, non-retail investors bid for over 13.03 crore shares at an indicative price of Rs 319.06 a shares, as against the base offer size of 2.49 crore shares for them.

The Government is selling about 4.16 crore shares, or up to 3 percent stake in NLC India (Neyveli Lignite Corporation), at a floor price of Rs 303 per share through a two-day OFS.

The issue will open for retail investors on Wednesday.

The stake sale comprises a base offer size of 2 percent, and an additional 1 percent greenshoe option in case of over-subscription.

If fully subscribed, the stake sale would fetch about Rs 1,200 crore to the exchequer at the floor price.

The floor price represents a 9.73 per cent discount over NLC India's closing price of Rs 335.65 a share on the BSE on Monday.

Shares of NLC India closed at Rs 327.85, down 2.32 percent over previous close on the BSE.

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The Government currently holds 72.20 percent in NLC India.

So far in the current fiscal year, the government has mopped up Rs 12,166 crore by selling minority stakes in PSUs. This include Rs 5,542 crore from Coal India, Rs 4,357 crore from NHPC and Rs 2,266 crore from Central Bank of India.

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