NMDC stake sale via OFS route begins; stock falls 4%

NMDC was trading 4% lower at Rs 155 on BSE in early morning trade as the government 1.5% stake sale programme in mining company commenced today. The government has fixed a floor price of Rs 153.50 apiece, is at a discount of 5% over the closing price of Rs 161.85 on Monday.

The two-day offer for sale (OFS) will open for institutional investors on Tuesday and for retail investors on Wednesday.

“The Promoter proposes to sell up to 47.46 million (1.5%) equity shares of the face value of Re 1/- each on January 09, 2018 (for non-Retail Investors only) and on January 10, 2018 (for Retail Investors and for non-Retail Investors who choose to carry forward their un-allotted bids) with an option to additionally sell up to 47.46 million (1.5%) equity shares of NMDC,” the company said in a notice of OFS.

The stock hit a 52-week high of Rs 163 on BSE on Monday, January 8, 2018 in intra-day trade had outperformed the market by gaining 23% in past one month. On comparison, the benchmark S&P BSE Sensex was gained 3.3% till yesterday.