The issue attracted bids for over 3.8 crore shares, or 1.02 times the 3.74 crore shares offered, according to data from the stock exchanges.
The indicative price was Rs 27 per share, which was also the base price for the offer. At this price, the stake sale will fetch the exchequer Rs 101 crore.
Sources said most of the bids came from insurance companies, banks and other financial institutions, while retail participation was negligible.
Soon after the stake sale commenced, the NFL scrip touched a low of Rs 25.25, a decline of 5.43 per cent from the previous close on the BSE. The stock later recovered and traded 1.31 per cent higher at Rs 27.05.
The government set the floor price for the issue at Rs 27 apiece, which was higher than yesterday's close of Rs 26.70.
The government holds a 97.64 per cent stake in the company and is selling shares to comply with Sebi norms on public shareholding. As per the regulator's norms, a public sector listed company should have a minimum 10 per cent public float by August 8.
IDBI Capital Markets is acting as merchant banker for the share sale.
The paid-up equity capital of the company, 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 and has raised over Rs 800 crore through stake sales in Hindustan Copper and MMTC.