The government is going to disinvest in NMDC. By selling its 7.49 percent stake, the government wants to collect a fund of about 3700 crores. Retail investors can bid from Wednesday.
DII has applied for this share more than double.
Disinvestment of NMDC: The government, which is facing a financial crisis, is constantly trying to achieve the target of 1.75 lakh crore of disinvestment and privatization. In this connection, the government is going to sell its stake in NMDC, a mineral sector company. Seven percent share sale in NMDC got a good response on the first day on Tuesday.
Institutional investors have placed total bids worth over Rs 3,700 crore. More than 10.55 crore shares have been placed under sale offer for institutional investors while bids came for 22.55 crore shares. This is 2.14 times of the total offer. As per the data available with NSE, the total bids by institutional investors (DIIs) at the nominal price of 166.46 are over Rs 3,753 crore.
Opportunity for retail investors from tomorrow
The sale offer for retail investors will open on Wednesday. The government is selling 21.95 crore shares or 7.49 per cent stake in public sector mining company NMDC at a minimum price of Rs 165. The exchequer is expected to get Rs 3,700 crore from this share sale. Shares of NMDC closed at 169.65, down 3.22 per cent on the BSE.
substantial share of DII
The 52-week high is Rs 213.20 and the low is Rs 75.60. The market cap of the company is around 50 thousand crores. This stock has given excellent returns of 22 percent in the last three months, 50 percent so far this year and 100 percent in the last one year. Apart from the government, DII is followed by domestic institutional investors with 20.76 per cent stake. Mutual funds have also increased their stake in the March quarter.
68.29 percent stake
The government currently holds 68.29 per cent stake in NMDC. The government has set a target of raising Rs 1.75 lakh crore from disinvestment in the current financial year. So far, Rs 3,994 crore has been raised through SUUTI (Specified Undertaking of the Unit Trust of India) stake sale in Axis Bank.
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