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Posted at: Apr 21, 2017, 12:40 AM; last updated: Apr 21, 2017, 12:42 AM (IST)

Nalco stake sale fetches Rs1,200 cr

Tribune News Service

New Delhi, April 20

The government has divested 9.2% of paid-up capital in National Aluminum Company Ltd. (Nalco) to raise Rs 1,200 crore in the first divestment of financial year 2017-18.

The Department of Investment and Public Asset Management (DIPAM) has set a record target of realising Rs 72,500 crore through disinvestment in the current fiscal. This follows an all-time high achievement of Rs 46,247 crore during 2016-17.

Originally, the disinvestment in Nalco offer for sale was pegged at 5% of paid-up capital, but seeing the overwhelming response from the market, DIPAM exercised the green shoe option to retain over-subscription and raised the offer to 9.2% yesterday.

With this transaction, the Government of India’s shareholding in Nalco has come down to 65.37%. If the original OFS offer of 5% is considered, the issue is over-subscribed by 2.56 times and if the revised offer of 9.2% is taken, the issue is subscribed 1.43 times. An official statement said the retail investor continues to back disinvestments of central PSUs. For the fourth time in a row, retail investors outperformed institutional investors.

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