The government has raised around Rs 6,000 crore via 10 percent stake sale in iron ore miner NMDC. The sentiment in the market seems to have changed as a buoyant response to the NMDC auction comes just a day after a massive oversubscription of the public issue of shares of ratings agency CARE. Even Bharti Infra’s offer was subscribed 44 percent on Day 2.
NMDC officials told CNBC-TV18 that the issue was subscribed 12.5 times at an indicative price of Rs 149.20/Share. Total bids were received for 49.6 crore shares. The government has raised around Rs 6,000 crore via 10 percent stake sale in NMDC, of which LIC bid for around Rs 1,200 crore worth of shares, while FIIs bid for around one third of the shares.
Against the offer for sale of 39,64,71,600 shares, or 10 percent, of government’s stake in the company, the offer has received 45,67,70,509 bids at an indicative price of Rs 149.11 per share till 1535 hrs, according to data available with bourses.
Indicative price is the volume weighted average price of all the valid or confirmed bids. The government had set the floor price for the offer at Rs 147 apiece. NMDC’s shares today settled at Rs 154.25, 3.17 percent down over the previous closing.
Actual bids may be even higher as stock exchanges are yet to complete the compilation of data of all the bids that were received since the opening of the process at 0915 hours this morning. It closed at 1530 hrs.
NMDC has kept one-fourth of the issue reserved for mutual funds and insurance companies. However, no single bidder, other than mutual funds and insurance firms, would be allocated more than 25 percent of the total offer, the iron ore miner had said in an exchange notification earlier.
NMDC is the second disinvestment candidate in the current fiscal, in which the government plans to raise Rs 30,000 crore by selling stakes in around a dozen PSUs. On November 23, it had garnered Rs 808 crore by selling 5.58 percent of its stake in Hindustan Copper.