The government has successfully divested 10 per cent stake in National Aluminum Company (Nalco) to mop up nearly Rs 1,300 crore.
A total of 193.3 million shares (including the greenshoe option) were put on auction through the offer for sale (OFS) route. The share sale received bids for 255 million shares. On Thursday, 71.22 million shares meant for retail investors were auctioned. The retail demand was three times more than shares on offer. The non-retail portion was subscribed on Wednesday. It got bids for 142.4 million shares as against 96.6 million on offer.
The base price for the OFS was set at Rs 67. Most of the bids came around the base price. Retail investors were offered an additional five per cent discount on the base price. Shares of the Nalco on Thursday ended at Rs 67.75.
Following the share sale, the government's stake in Nalco will fall from 74.58 per cent to 64.58 per cent.
In the non-retail segment, most of the bids come from state owned institutions including Life Insurance Corporation (LIC).
Nalco's shares are expected to do well due to firming up of aluminium prices in the global market. Analysts at Motilal Oswal say expect a substantial boost the Nalco's operating profit thanks to higher aluminium prices and volumes up tick. Nalco's consistent dividend track record is a positive for the stock, they say.
The center has set up an ambitious divestment target of Rs 72,500 crore for the fiscal. Of this, the government expects to garner Rs 46,500 crore through minority stake sales, another Rs 15,000 crore from strategic divestment. The initial public offerings (IPOs) of GIC companies are expected to fetch another Rs 11,000 crore. Divestment proceeds had touched a life-time high during the previous fiscal. The government raised Rs 46,246 crore through dilution of stake in various public sector entities, Dipam data showed.
