NMDC tapping capital markets on March 10

Iron ore producer NMDC is tapping the capital markets on March 10, with a follow-on public offering (FPO) through an offer of sale for cash.

The selling shareholder, in consultation with the book running lead managers, has fixed the price between Rs 300 and Rs 350 per equity share for the FPO, which comprises a net offer to the public of 330,500,000 equity shares of face value of one rupee each and a reservation of 17,43,200 equity shares for purchase by eligible employees, NMDC General Manager Finance N Srinivasan told reporters here today.

The offer shall constitute up to 8.38 per cent of the post offer paid up equity share capital of the company, he said.

Stating that a discount of five per cent of the offer price determined pursuant to the completion of the book building process shall be offered to retail individual bidders and eligible employees, he said the excess amount paid at the time of bidding shall be refunded to the retail individual bidders and eligible employees.

"Up to 50 per cent the net offer of the FPO would be available for allocation on a proportionate basis to Qualified Institutional Buyers (QIB)," he said adding five per cent of the QIB portion shall be available for allocation on a proportionate basis to mutual funds only.

He said the remainder of QIB portion shall be available for allocation on a proportionate basis to QIBs and mutual funds.