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NMDC $1.1 bn share sale 28% covered

The offer has received bids for 109.60 million shares

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Reuters Mumbai
Last Updated : Jan 24 2013 | 2:10 AM IST

India's up to $1.1 billion share sale in state miner NMDC Ltd received bids for nearly 28% of the total shares on offer, an encouraging sign for the government's efforts to divest stakes in other state firms to bridge its rising fiscal deficit.

By 1.15 p.m. (0745 GMT), the offer had received bids for 109.60 million shares, stock exchange data showed. Share auctions in India typically see limited interest until their final hours.

The government is selling 396.47 million shares, or 10% of the company's stock, and had set a floor price of Rs 147 per share for bids.

The share sale is the largest by the government since a messy $2.5 billion auction of shares in state explorer Oil and Natural Gas Corp in March that had required large bids from state investors.

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First Published: Dec 12 2012 | 1:47 PM IST

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