NMDC now below FPO price, slips 2%

NMDC today declined below its follow-on-public offer price following a 2% drop in share price. The stock ended 2% lower at Rs 298 as against its FPO price of Rs 300 per share offered to qualified institutional buyers and non-institutional investors.

The stock touched high of Rs 310, but finally settled below its FPO price on the BSE. The counter witnessed heavy volume of around 1.79 million equity shares when compared to an average 1.22 million shares traded daily in last two weeks. The stock has shed almost 44% in last two months from Rs 534 on January 22.

The Rs 9,967 crore ($2 billion) FPO was subscribed just 1.25 times, backed mainly by state run financial institution Life Insurance Corporation of India (LIC) and other local institutional investors. Post offer government's stake has come down by 8.38 per cent from 98.38 per cent to 90 per cent.

Besides, fixing issue price at the lower end of the price band at Rs 300, the company also offered 5% discount to retail investors and employees at Rs 285 per share.