NBCC share sale: LIC buys over 50% shares on offer, invests Rs 1,200 crore

New Delhi: State-owned LIC picked up more than half of the NBCC shares sold by the government in the Rs 2,218-crore disinvestment.

LIC's stake in the state-run construction firm has gone up to 8.11 percent following its participation in NBCC offer for sale which happened last week.

The insurer bought as many as 4.86 crore shares or 54.08 percent of the nine crore shares on offer on the day of OFS, according to a filing by NBCC.

At the OFS floor price of Rs 246.50, LIC would have invested around Rs 1,200 crore for picking up over 4.86 crore NBCC shares.

NBCC listed "Market purchase through OFS" as the mode of LIC's acquisition done on October 20-21.

The government had offered 9 crore shares for sale through the OFS whose floor or minimum bid price was set at Rs 246.50 apiece. It had raised Rs 2,218 crore by selling 15 percent stake to both institutional and retail investors.

During the two day share sale, while institutional investors outbid their quota, retail investors picked up 82 percent of the shares reserved for them.

NBCC shares dipped to Rs 240.40 today, as against the auction floor price of Rs 246.50.

Together with three disinvestments through offer for sale (OFS) since April, the government has mopped up over Rs 8,632 crore so far this fiscal. It has budgeted for Rs 56,500 crore through PSU stake sale in current fiscal, including Rs 20,500 crore through strategic stake sale.