NMDC OFS - Latest News
NMDC recently announced that he government plans to offload a 4% stake in the company through an offer for sale (OFS) which opens for subscription on Tuesday. The company said the President of India, acting through and represented by the Union ministry of steel is the promoter of NMDC.
The government will sell its 4% stake or 117.2 million shares or 11.72 crore shares in the iron ore producer at a floor price of Rs 165 each. The floor price has been set at ~6% discount to Monday’s closing price. The OFS also includes a greenshoe option to sell an additional 3.49% shareholding or 102.2 million shares or 10.22 crore shares of the public sector undertaking (PSU).
The entire 7.49% stake sale is likely to raise about Rs 3,621 crore for the government, and will reduce its shareholding in the company to 60.8%. The President holds 68.29% stake in the company.
The OFS will open for institutional investors on July 6, and such non-retail investors will get an option to carry forward their unallocated bids to the next day for allocation from the unsubscribed portion for retail investors. The issue will open for retail investors on July 7.
The sale would help the government in moving ahead with its divestment plan as the impact of second wave of Covid-19 fades, and it looks to achieve its Rs 1.75 trillion target for the ongoing fiscal.
NMDC, the country's largest iron ore mining company, said the offer shall take place during trading hours on a separate window of the stock exchanges at 9:15am and shall close at 3:30pm. NMDC added that the offer will continue to take place during trading hours on a separate window of the stock exchanges on Wednesday from 9:15am and close at 3:30 pm.
Disclaimer: The above report is compiled from information available on the public platforms. These are not buy or sell recommendations.
Start Investing Now!
Open Free Demat Account in 5 mins