As of 2 PM on Thursday, the government received bids for 12.13 crore shares, against 8.70 crore shares on offer, data on the BSE showed.
The offer for sale opened for institutional investors on Thursday and will open for retail investors on Friday.
Under the OFS, the government plans to sell 9.66 crore shares, representing 2.5% equity, with an option to sell another 9.66 crore shares in case of an oversubscription.
As of June end, the government held a 86.7% stake in the power producer. As per the regulatory norms, the minimum public shareholding in a listed company should be 25%.
The lucrative price at which the government is offering shares drove the strong response to the OFS.
The government set a floor price of Rs 69 for the OFS, which was a nearly 16% discount to Wednesday’s close price of the stock.The government received bids at an indicative price of Rs 69.19 a share.
The steep discount prompted traders to sell it in the open market and subscribe to the OFS.
Shares of the public sector company plunged 11% to Rs 72.75 on the National Stock Exchange. Traded volumes of about 100 million shares, was nearly five times higher than the six-month average traded volumes.
The government has reserved about 25% of the offer for mutual funds and insurance companies, and 10% for retail investors.
Pursuant to the OFS, the government may sell up to 0.5% equity to the willing employees of the company.
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