Mumbai: The government's Offer for Sale (OFS) in NLC India witnessed strong demand from institutional investors on the first day of bidding.
According to exchange data, non-retail investors bid for more than 13.03 crore shares against the base offer size of 2.49 crore shares reserved for them. This resulted in the issue being subscribed more than five times on Day 1.
The bids were placed at an indicative price of Rs 319.06 per share, taking the total value of bids to around Rs 4,158 crore.
Government Selling Up To 3 percent Stake
The Centre is selling up to 3 percent stake in state-owned NLC India through a two-day OFS.
The share sale includes a base offer of 2 percent equity and an additional 1 percent greenshoe option, which can be exercised if investor demand remains strong.
The government has fixed the floor price at Rs 303 per share.
At this price, the stake sale could help the government raise nearly Rs 1,200 crore if the entire offer is fully subscribed.
Retail Investors Can Bid On Wednesday
After strong participation from institutional investors, the OFS will now open for retail investors on Wednesday.
The floor price of Rs 303 per share was offered at a discount of about 9.73 percent compared to NLC India's closing price of Rs 335.65 on the BSE before the issue opened.
A lower offer price is often used to attract wider investor participation in stake sales.
Shares End Lower Despite Strong Demand
Despite the strong response to the OFS, NLC India shares ended Tuesday's trading session lower.
The stock closed at Rs 327.85 on the BSE, down 2.32 percent from the previous close.
The government currently owns 72.20 percent stake in the company and is gradually reducing its holding through market-based disinvestment programmes.
Disinvestment Drive Continues
The NLC India OFS is part of the government's broader disinvestment strategy.
In the current financial year so far, the government has raised around Rs 12,166 crore through minority stake sales in public sector companies. Major contributions came from Coal India, NHPC and Central Bank of India.
The strong demand for NLC India's OFS indicates continued investor interest in select public sector companies despite market volatility.
