NMDC slips on steep discount in FPO pricing

NMDC has slipped 6% to Rs 377 after the government set a price band for the follow-on offering (FPO) of the company at a discount to the ruling market price.

The stock opened at Rs 379 against its previous day's close of Rs 401 and slipped further to Rs 365 during intra-day trades. The stock is currently trading at four months low, has seen trading volume of 472,000 equity shares so far on the BSE.

The government has set a price band of Rs 300-Rs 350 for the FPO, which will open on tomorrow, March 10, 2010 and will close on Friday, 12 March 2010. The government will also offer a 5% discount to retail investors on the final price, which will be decided after the book-building part of the issue closes.