NMDC shares to be offered in Rs300-350 price band
09 Mar 2010
Shares of the National Minerals Development Corporation (NMDC) in the follow-on public offer (FPO) which will open 10 March and will be priced in the Rs300-350 per share band. This works out to a discount of 12.7 per cent to 25.2 per cent to the current market price.
Market expectations for the offering were at mid-point or a lower price band of Rs300. The issue will close on 12 March.
The government expects to raise Rs9,967 to Rs11,682.5 crore for its 8.38 per cent stake sale which will see its holding diluted to 90 per cent from 98.4 per cent.
Commenting on the development, Rana Som, chairman and managing director of NMDC said the issue price band had been decided following a scientific method, however, he added that the final pricing would be decided on 13March - post final subscription.
''Retail investors will get a 5 per cent discount and 35 per cent of the block has been allotted for them,'' Som added.
In the coming years the company portfolio would diversify including steel and other materials he added. He said the company expected FY11 mining output at 50 million tonne.
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