PremiumMumbai: NMDC’s offer for sale (OFS) which opened for subscription 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 of India proposes to sell up to 117.22 million equity shares representing a 4% stake, with an option to sell an additional 3.49% stake or 102.28 million equity shares in case of oversubscription.
The floor price for the OFS is ₹165 per equity share, a 5.88% discount to NMDC's closing price of ₹175.30 on the BSE on Monday.
The total OFS size base size plus greenshoe stands at 219.50 million shares, representing 7.49% of outstanding equity shares of the company, aggregating to ₹3,621.78 crore.
The OFS opened on Tuesday for non-retail investors, while both retail as well as non-retail investors will be able to subscribe on Thursday. A total of 10% of the offer size is reserved for retail investors.
NMDC is India's single largest iron ore producer, presently producing about 35 million tonnes of iron ore from 3 fully mechanized mines, two located in Chhattisgarh and one in Karnataka. As on 31 March 2021, the Government of India held 68.29% stake in the company.
On a consolidated basis, NMDC's net profit surged 708% higher at ₹2,838 crore for the quarter ended March 31 compared to ₹351 crore during the same period last fiscal. During the fourth quarter of the last fiscal, turnover jumped 114.83% to ₹6,848 crore against ₹3,187 crore in the same quarter in FY20.
Shares of NMDC Ltd lost 3.22% to close at ₹169.65 on the BSE on Tuesday, while the benchmark index, Sensex ended largely flat at 52,861.18 points.
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