Shares of National Fertilizers Ltd (NFL) fell more than 5% in the morning as government disinvestment began on the bourse.
Within an hour of the issue’s launch on the stock exchanges, it attracted 90 lakh bids, or 24 per cent of the total 3.74 crore shares on offer. The offers were presented at an indicative price of Rs 27 each.
NFL shares touched a low of Rs 25.25 apiece, down 5.43 per cent from the previous close of Rs 26.70 on the BSE.
The government, which is selling 3.74 crore shares of NFL, had fixed the base price of the issue at Rs 27 apiece, which was lower than the prevailing market price.
The government holds 97.64% stake in the company and disinvestment is underway to make it Sebi compliant.
Disinvestment of 7.64 per cent stake, or 3.74 crore shares through offer for sale (OFS) at a base price of Rs 27 apiece, would fetch the exchequer Rs 101 crore.
IDBI Capital Markets is acting as investment banker for the sale of the shares.
As per Sebi norms, a listed public sector company must have a minimum of 10% free float by August 8, 2013.
The paid-up share capital of the company, as on March 31, 2012, stood at Rs 490.58 crore.
The government proposes to raise Rs 40,000 crore through disinvestment in the current budget. So far in the current fiscal, it has collected over Rs 800 crore.
