NMDC files for FPO with SEBI
The state-run mining giant NMDC on Monday filed the draft prospectus with the market regulator SEBI for its follow-on public offer, through which the government expects to mop up Rs 20,000 crore.business Updated: Jan 25, 2010 21:56 IST
The state-run mining giant NMDC on Monday filed the draft prospectus with the market regulator SEBI for its follow-on public offer, through which the government expects to mop up Rs 20,000 crore.
“The company has flied the draft red herring prospectus (DRHP) with the SEBI for a further public offer of 33.22 crore (3,32,243,200) equity shares,” NMDC said in a statement.
The government, which is planning to complete the process within this fiscal, will use the proceeds to part fund its various social and infrastructure programmes.
Under the follow-on-public-offer (FPO), the government will be diluting 8.38 per cent of its stake in the miner constituting 33.22 crore equity shares with a face value of Re 1.
The government owns 98.38 per cent in the firm while the remaining has already been made public.
Based on Monday's closing price of Rs 515.70 on the BSE, the government could mop up Rs 17,133.78 crore from the FPO proceeds. However, the final issue price would be decided by an empowered group of ministers in the first week of February.
The national miner would offer a 5 per cent discount on the issue price to retail investors and its employees. “The offer comprises a net offer to the public of 33 crore equity shares and a reservation of 17.43 lakh equity shares for purchase by eligible employees at a discount of five per cent of the floor price,” it added.