The government got Rs 9,930 crore from its follow-on offer of NMDC shares, leaving it short by Rs 1,448 crore for its year’s disinvestment target of Rs 25,000 crore. In addition, it got about Rs 2.5 crore by way of interest income on the issue money from banks.

“We must understand the figure of Rs 25,000 crore was only indicative,” said a finance ministry official.

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The government’s proceeds from disinvestment in NHPC, Oil India Ltd (OIL), Rural Electrification Corporation (REC) and NTPC stood at Rs 13,622 crore. NMDC’s FPO increased the total proceeds to Rs 23,552 crore.

NMDC’s issue price was fixed at Rs 300 per share and Rs 285 for employees and retail investors, which was a heavy discount to its market price of over Rs 400 a share. The FPO shares opened at Rs 295.70 at the Bombay Stock Exchange on Monday.

It went to a low of Rs 283.5 and closed at Rs 284.7.

The issue, diluting 8.38 per cent of the government equity in NMDC, hit the market on March 10 with over 330 million equity shares. It offered shares at a price band of Rs 300-350 and was subscribed 1.25 times.

NMDC was the biggest issue of the government in 2009-10. It mopped up Rs 8,480 crore from NTPC, followed by Rs 2,247 crore from OIL, Rs 2,012 crore from NHPC and Rs 882 crore from REC. Besides, it got interest income of Rs 5.25 crore from the NTPC issue and Rs 1.25 crore from REC.

For 2010-11, the government has set a disinvestment target of Rs 40,000 crore. Hindustan Copper, Coal India, Bharat Sanchar Nigam, Steel Authority of India and Engineers India Ltd are expected to come up with public offers.

SJVN, earlier scheduled for disinvestment in 2009-10, would now hit the market in 2010-11.

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