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Shares of iron ore miner NMDC Ltd dropped as much as 4.8 per cent to Rs 154.10 as the company's offer-for-sale (OFS) by the Central Government opened for subscription on Tuesday for non-retail investors. For retail investors, the issue will open on Wednesday.
The Centre will sell 1.5 per cent of its equity stake in state-run NMDC. “The government proposes to sell up to 4.74 crore (1.5 per cent) equity shares of the face value of ₹1 each in NMDC,” the company had said in a filing to the stock exchange on Monday.
The disinvestment, to be carried out through the offer for sale route, is expected to raise about ₹750 crore. The stake sale will have a green-shoe option to retain over-subscription of a further 1.5 per cent. This will mean that the Centre could divest 3 per cent of its stake in NMDC and earn close to ₹1,500 crore.
While institutional investors will get a chance to bid on Tuesday, the OFS will open for retail investors on Wednesday. The floor price has been set at ₹153.50 a piece, which amounts to a discount of 5 per cent on the closing price of ₹161.85 on Monday on the BSE.
NMDC posted biggest intraday percentage fall since December 18. The company shares were on track for their first drop in seven sessions; the stock was up 17.5 per cent this year as of Monday's close.
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