The disinvestment of National Fertilisers Ltd through the offer-for-sale route attracted bids worth 1.52 crore or 40.62 per cent of the total 3.74 crore shares on offer till 12.25 p.m. local time.
The bids came in at an indicative price of Rs 27 apiece.
The Government, which is selling 3.74 crore shares in NFL, had fixed the base price for the issue at Rs 27 apiece, which was lower than the prevailing market price.
The NFL scrip was trading up by 0.56 per cent at Rs 26.85 on the BSE.
The Government holds 97.64 per cent stake in the company and the disinvestment is being done to make it compliant with SEBI norms.
The disinvestment of 7.64 per cent stake or 3.74 crore shares through the 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 merchant banker for the share sale.
As per SEBI norms, a public sector listed company should have a minimum of 10 per cent public float by August 8, 2013.
The paid-up equity capital of NFL, as on March 31, 2012, was Rs 490.58 crore.
The Government proposes to raise Rs 40,000 crore by way of disinvestment in the current fiscal. So far in the current fiscal, it has raised over Rs 800 crore.