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NMDC issue price at Rs 300

business Updated: Mar 15, 2010 23:53 IST
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State-run mining major NMDC on Monday said it has fixed the issue price of its follow-on public offer (FPO) of 33.22 crore equity shares at the lower end of the price band at Rs 300 a piece.

Besides, the Navratna PSU has offered a 5 per cent discount to retail investors and employees at Rs 285 per share, NMDC said in a filing to the National Stock Exchange.

The $2-billion follow-on public offer (FPO) of the country’s largest iron ore miner was subscribed 1.25, backed mainly by state run financial institution LIC. The mining giant’s public offer of 33.22 crore shares in the price band of Rs 300-350 per piece was open between March 10 and March 12.

During the FPO, most of the bids came in at the lower end of the band, which analysts feel, prompted the government to fix the issue price at the lower end.

NMDC FPO is the third public offer in 2010 by the UPA government under its divestment plan. NTPC follow-on offer was subscribed 1.29 times, while the REC issue was subscribed over three times.

The government is divesting 8.38 per cent of its 98.38 per cent holding in NMDC through
the FPO.