The sixth CPSE disinvestment of the fiscal year 2016-17 took place on 20th and 21st October, 2016 with the NBCC OFS getting oversubscribed 1.54 times in non-retail category and 1.50 times in retail category.
On offer was 15% paid up equity capital of the company comprising 9,00,00,000 shares, each of FV of Rs. 2. Out of the shares on offer for sale, 20% were reserved for retail investors. The closing price on 19/10/2016 was Rs. 253.00 (BSE)/ Rs. 253.30 (NSE) and floor price was fixed at Rs. 246.50.
As per the new SEBI guidelines only non retail investors were allowed to place their bids on 20th October, 2016 (T Day) for non-retail portion, and retail investors were allowed to bid on 21st October, 2016 (T+1 day).
The retail investors bid today (T+1) for 20% of the portion reserved for them, ie., 1,80,00,000 equity shares of the Company amounting to Rs. 443.70 crore at floor price. They had the option to place a price bid or opt for bidding at cut off price. The new arrangement provides retail investors the benefit of discovering the cut off price of T day and place their bids on T+1 day on a more informed basis than was the case earlier. As usual retail investors i.e. those investors who place bids for shares of total value of not more than Rs. 2.00 lakh, will in addition be entitled to a 5% discount. The discount to retail investors shall be applicable to bids received today (T+1).
With this disinvestment, the GOI share in NBCC will come down to 75%.
At the end of the day with total subscription of Rs. 3098 crore against Rs. 2218 crore (at floor price) the NBCC OFS stood oversubscribed by 1.4 times.
The highlight of the issue has been the encouraging FII participation of Rs. 369.21 crore which works out to be 21% of the non-retail basket.