Government divests paid-up capital in NMDC

The Government of India on Wednesday divested 2.52 percent of paid-up capital in National Mineral Development Corporation (NMDC) for an amount of Rs. 1200 crore approximately.

Rs. 980.05 crore came from non-retail investors and Rs. 232 crore approximately came from retail investors through Offer for sale (OFS) mechanism.

Originally, the disinvestment in NMDC OFS was pegged at basic issue size of 1.5 percent of paid-up capital at floor price of Rs.153.50 per share.

The issue got over-subscribed by three times the base issue size.

Further, to encourage retail participation, a discount of five percent on the cut off price was offered to retail investors.

The retail portion has been over-subscribed by 439.64 percent.

The issue has attracted investments from foreign investors, domestic institutional investors, and mutual funds.

With this transaction, the government's shareholding in NMDC has come down from 74.94 percent to 72.42 percent.