NMDC FPO subscribed 9% till 1300 hrs on day 1

The follow-on public offer of state- run NMDC received bids for 9 per cent of the shares on offer till 1300 hrs on the first day of the issue today with majority of the demand coming in at the lower end of the price band.

The government has fixed a price band of Rs 300-350 per share for the follow-on public offer (FPO) of the country's largest miner. The issue would close on March 12.

The issue received bids for 2.85 crore shares, or 9 per cent of the 33.22 crore shares put on the block, as per the data available on the National Stock Exchange.

The government would be divesting 8.38 per cent of its 98.38 per cent holding in the country's largest iron ore producer.

If fully subscribed, the government would mop-up Rs 9,900 and Rs 11,700 crore at the lower and the upper end of the price band respectively.

The Navratna firm has reserved 35 per cent of the issue for retail buyers, whereas 50 per cent has been reserved for qualified institutional buyers, which includes FIIs and mutual funds.

The company would offer a discount of 5 per cent to retail investors and its employees over the issue price, which will be decided after the completion of the FPO.

In the secondary market shares of NMDC were trading at Rs 376.50, down 0.30 per cent in the afternoon trade on the NSE.