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Disinvestment: NMDC OFS subscribed 2.14 times on Day 1 by non-retail investors

NMDC Ltd’s Offer for Sale (OFS), which opened for non-retail investors on Tuesday, was subscribed 2.14 times

Disinvestment: NMDC OFS subscribed 2.14 times on Day 1 by non-retail investors
Disinvestment: NMDC OFS subscribed 2.14 times on Day 1 by non-retail investors
  • The floor price for the OFS is Rs 165 per equity share, which is a 5.88 percent discount on the closing price of Rs 175.30 recorded on the BSE on July 5
  • NMDC informed the bourses that the government will have the option to sell up to 3.49% stake in the company in case of an oversubscription

New Delhi: State-run NMDC Ltd’s Offer for Sale (OFS), which opened for non-retail investors on Tuesday, was subscribed 2.14 times. The offer received subscription for 225.51 million shares against the base non-retail offer size of 105.50 million shares. Through the OFS, the government is looking to offload 4 percent shareholding in the company, equivalent to 117.22 million equity shares. The floor price for the OFS is Rs 165 per equity share, which is a 5.88 percent discount on the closing price of Rs 175.30 recorded on the BSE on July 5.

NMDC: Govt to exercise oversubscription option up to 3.49%

In a regulatory filing to the stock exchanges on Tuesday, NMDC informed the bourses that the government will have the option to sell up to 3.49% stake or 10,22,78,144 equity shares in the company in case of an oversubscription. “In the event the Oversubscription Option is exercised, the Equity Shares forming part of the Base Offer Size and the Oversubscription Option will in aggregate, be referred to as the "Offer Shares". In the event such Oversubscription Option is not exercised, the Equity Shares forming part of the Base Offer Size will be referred to as the "Offer Shares", through the separate designated window of BSE Limited ("BSE") and National Stock Exchange of India Limited ("NSE" and together with BSE, the "Stock Exchanges"), collectively representing 7.49% of the total paid up equity share capital of the Company, and such offer hereinafter referred as the "Offer"),” said NMDC.

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“The promoter proposes to sell up to 11,72,24,234 equity shares of the company, (representing 4 per cent of the total issued and paid up equity share capital of the company on July 6 for non-retail investors and on July 7 for retail and non-retail investors who choose to carry forward their un-allotted bids with an option to additionally sell 10,22,78,144 equity shares representing 3.49 per cent of the total issued and paid-up equity share capital of the company,” it added.

The backdrop

The Centre currently holds 68.29 percent stake in NMDC Ltd. NMDC shares slipped around 3 percent on BSE and the NSE on Tuesday, after the OFS opened. NMDC is India’s single largest iron ore producer. It produces about 35 million tonnes of iron ore from three fully  mechanised mines located in Chhattisgarh and one in Karnataka.

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