NMDC drops ahead of FPO pricing

NMDC has declined 3% to Rs 421, on reports that follow-on-public offer (FPO) may priced at a huge discount.

The stock is second largest loser among the public sector undertaking (PSU) stocks, it opened at Rs 442 and touched low of Rs 403 on the BSE.  Rural Electrification Corporation (REC) is the top loser, down almost 5% at Rs 233.

The government holds 98.38% stake in the company, is offering investors 332.2 million shares in FPO. According to the report, the government may set the floor price for a FPO at 30-35% lower than the ruling market price, following the cold response from retail investors to NTPC and REC follow-on-offers.