Government raises Rs 1,200 crore from NDMC offer for sale

By: | Published: January 11, 2018 2:39 AM

The NMDC offer for sale (OFS) concluded on Wednesday with the government successfully raising about Rs 1,200 crore by divesting 2.52% of its stake in the company.

NMDC, Government, OFS, Non retail investorsThe NMDC offer for sale (OFS) concluded on Wednesday with the government successfully raising about Rs 1,200 crore by divesting 2.52% of its stake in the company. (Image: PTI)

The NMDC offer for sale (OFS) concluded on Wednesday with the government successfully raising about Rs 1,200 crore by divesting 2.52% of its stake in the company.The government sold 7.95 crore shares at a floor price of Rs 153.50.  The government raised about Rs 980.05 crore from non-retail investors and Rs 232 crore from retail investors after it decided to exercise the greenshoe option on Tuesday by offering another 3.2 crore shares, in addition to the base offer size of 4.74 crore.  As of September 2017, the government held a 74.94% stake in the company. Post OFS the government stake would reduce to 72.42%. The OFS was subscribed by 1.87 times with investors bidding for 14.95 crore shares against 7.95 crore shares on offer.

The retail portion of the OFS was subscribed 5.4 times on Wednesday, the concluding day of the offer.  Retail investors bid for 8.58 crore shares against 1.59 crore shares on offer.  The NMDC stock ended Wednesday’s session at Rs 155.30, a gain of 0.45% from the previous close.  A total of 1.38 crore shares were traded on the two main exchanges–Bombay Stock Exchange and National Stock Exchange–and the volumes were 3.5 times higher than the average daily volumes in the past three months.

The stock has appreciated by 13.67 % in the past 12 months, underperforming the benchmark indices. NMDC is engaged in mining of iron ore other minerals and allied services. It is also involved in the production and sale of diamonds, sponge iron, and wind power.

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