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NMDC offer a success

New Delhi, Dec. 12 (PTI): The NMDC issue was subscribed 1.73 times today, fetching Rs 6,000 crore to the government for its 10 per cent stake, on the back of a strong participation from FIIs and state-run insurer LIC.

The success of the issue, which received 68.69 crore bids against 39.65 crore on the block through the offer for sale route till 1600 hrs, will pave the way for divestment of a clutch of other PSUs.

“We have mopped up about Rs 6,000 crore from the NMDC share sale. The average weighted price for the bids is Rs 150 per share,” a top finance ministry official said.

The official said a bulk of the bids came from FIIs at an average price of Rs 150 per share, while state-owned financial institutions, including the LIC, took part in the bidding in a big way, mostly at Rs 147 per share.

FII participation in a government share sale through the auction route has never seen so much response, the official said.

In the ONGC and HCL selloffs, where the offer for sale route was taken, state-owned financial institutions had to chip in at the last moment to bail them out.

“The fact that FII money is coming in a big way in a PSU divestment is good for the country. It shows FII interest is there,” the official said.

As there was no green shoe option, the shares would be distributed following the “price priority” methodology. According to data available with the bourses, bids were received at an indicative weighted average price of Rs 149.15 per share.

 
 
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