Crore Via BEL Stake Sale
- Author: Zachary Reyes Feb 24, 2017,
Feb 24, 2017, 6:32
The government's 5 percent stake sale in Bharat Electronics Ltd (BEL) opened to an enthusiastic response today, with the shares reserved for institutional investors getting over-subscribed.
Most of the bids came at Rs 1,500.05 per share, higher than the floor or minimum bid price of Rs 1,498.
Earlier this fiscal, the government had raised about Rs 1,800 crore through share buyback of BEL.
Of the total quantum proposed for the next fiscal, the Centre aims to mop up Rs 46,500 crore from minority stake sales of new listings as well as listed firms.
The government is likely to receive Rs 1,670 crore from disinvesting five per cent of its stake in Bharat Electronics (BEL), as the issue price was over-subscribed by 260 per cent. It surpasses the Rs 69,500 crore proposed two years ago.
Retail investors bid for over 81.87 lakh shares, or 3.67 times, of the 22.33 lakh shares on offer, as per NSE data.
Non-retail investors bid for 2.09 crore shares against 89.34 lakh shares reserved for them.
The government had put 11.16 million shares, or 5% of its stake in BEL, on offer as part of its disinvestment plans for the current financial year.
BEL stock was trading 3.04 percent down at Rs 1512.45 on BSE in pre-close trade. Retail investors will be allowed to bid on Thursday.
Bharat Electronics is the second government OFS in 2017, the last being the sale of its 10 percent stake in Manganese Ore (India) Ltd. (MOIL) raising Rs 480 crore. "In fiscal 2016-17, the government expects Rs 45,500 crore disinvestment receipt as against Rs 56,500 crore budget estimate".