The price band is around 3-6.3% lower than the current valuation of the company. Shares of the company fell by 2.5% on Monday to settle at Rs. 154.75.
The stock had underperformed the market over the past one month till last Friday, falling 13% compared with the Sensex’s 2.76% rise. The scrip had also underperformed the market in past one quarter, sliding 15.2% as against Sensex’s 9.8% rise.
This is the second disinvestment by the government in this fiscal after last month’s 5.6% stake sale for about Rs. 807 crore in Hindustan Copper.
The government has a 90% stake in NMDC. In February 2008, the Centre had raised over Rs. 9,000 crore through divesting an 8.4% stake at Rs. 300 per share.