NMDC drops as government to divest stake in OFS

NMDC lost 4.29% to Rs 154.90 at 14:44 IST on BSE after the government announced a stake sale in the company through an offer for sale at floor price of Rs 153.50 per share.

The announcement was made after market hours yesterday, 8 January 2018.

Meanwhile, the S&P BSE Sensex was up 84.19 points, or 0.25% to 34,436.98.

On the BSE, 7.10 lakh shares were traded in the counter so far, compared with average daily volumes of 6.30 lakh shares in the past two weeks. The stock had hit a high of Rs 156.25 and a low of Rs 154.50 so far during the day. The stock had hit a 52-week high of Rs 162.55 on 8 January 2018. The stock had hit a 52-week low of Rs 102.80 on 27 June 2017.

The large-cap company has equity capital of Rs 316.39 crore. Face value per share is Re 1.

On the first day of the bidding for OFS today, 9 January 2018, as at 14:45 IST, bids were received for 1.73 crore shares from the non-retail investors, representing a subscription of 45.71%.

The President of India, acting through and represented by the Ministry of Steel, Government of India, is the promoter of NMDC (Promoter). The promoter proposes to sell up to 4.74 crore (1.5%) equity shares on 9 January 2018 (for non-retail investors only) and on 10 January 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 4.74 crore (1.5%) equity shares of NMDC. The announcement was made after market hours yesterday, 8 January 2018.

NMDC reported iron ore production of 24.23 million tonnes in December 2017. The company reported iron ore sales to 25.64 million tonnes in December 2017. The announcement was made during market hours today, 9 January 2018.

NMDC's net profit rose 9.5% to Rs 844.30 crore on 39.2% rise in net sales to Rs 2421.33 crore in Q2 September 2017 over Q2 September 2016.

NMDC is India's largest public sector iron ore producer. As per the shareholding pattern, Government of India (GoI) holds 74.94% stake in NMDC as on 30 September 2017.

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