NMDC divestment: Institutional buyers offer bids of Rs 976 crore

New Delhi: Institutional investors put in bids worth Rs 976 crore on Tuesday for buying government's part stake in state-owned miner NMDC.

The government had originally planned to sell 1.5 percent stake in the company, with a green-shoe option to retain an equal quantum.

Based on the response from institutional buyers, however, it has decided to keep the issue size at 2.52 percent, according to a finance ministry official.

The sale of 2.52 percent in NMDC by the government after exercising green-shoe option would fetch about Rs 1,200 crore to the exchequer.

FIIs and institutional investors have bid for over 6.36 crore shares – 1.68 times of the 3.79 crore shares reserved for them, according to the NSE data.

At the floor price of Rs 153.50 apiece fixed by the government, bids for over 6.36 crore shares by institutional buyers would fetch Rs 976 crore to the exchequer. The two-day offer for sale (OFS) will open for retail investors on Wednesday.