NMDC offer for sale to fetch up to Rs 3,620 crore

By: |
July 06, 2021 2:13 AM

The OFS will open on the stock exchanges on Tuesday for non-retail investors, while retail will be able to place bids on Wednesday.

NMDC OFS will be the first stake sale in a state-run firm in the current financial year, as most of the proposed big-ticket transactions such as BPCL privatisation have been delayed to the second wave of Covid-19.

The Union government will sell up to 7.49% stake in state-run miner NMDC to raise up to Rs 3,620 crore through an offer for sale at a floor price of Rs 165/share on Tuesday-Wednesday. The floor price is at a discount of 5.9% to the closing share price (Rs 175.3) of NMDC on the BSE on Monday.

The OFS will open on the stock exchanges on Tuesday for non-retail investors, while retail will be able to place bids on Wednesday.

The base offer size of the OFS will be 4% (11,72,24,234 equity shares) government stake with an option to retain oversubscription amounting to 3.49% (10,22,78,144) stake in the company, NMDC informed the BSE.

Currently, the government owns 68.29% stake in the mining undertaking.

NMDC OFS will be the first stake sale in a state-run firm in the current financial year, as most of the proposed big-ticket transactions such as BPCL privatisation have been delayed to the second wave of Covid-19.

By selling a portion of SUUTI (Specified Undertaking of Unit Trust of India) stake in private lender Axis Bank, the government has mobilized Rs 3,994 crore or 2.25% of the FY22 disinvestment target of Rs 1.75 lakh crore.

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