By BS Reporter
The government on Friday raised about Rs 630 crore by divesting its holding in aluminum manufacturer National Aluminum Company (Nalco), taking it close to the downward revised disinvestment target of Rs 24,000-crore for 2012-13.
The Nalco offer for sale (OFS), the sixth government share auction this financial year, received 156.9 million bids at a weighted average price of Rs 40.05, stock exchange data showed.
The government had put on the block 128.8 million shares, or five per cent stake. There was an option of selling another five per cent in case of over-subscription. Though the auction was subscribed 1.2 times, on an overall basis, the demand was for just 60 per cent of the total shares available.
A government official said he was disappointed by the response. A merchant banker handling the issue said there wasn't much demand from foreign investors, given the weak sentiment towards the metal sector.
The shares of Nalco closed at Rs 40.35, down Rs 3.90 or 8.8 per cent on the Bombay Stock Exchange. At on Friday's close the company's market capitalisation was Rs 10,400 crore.