NMDC ends flat as OFS concludes

NMDC shed 0.80% to Rs 168.30 after the company's offer for sale (OFS) concluded on Wednesday, 7 July 2021.

Through the OFS, the Government of India initially proposed to sell up to 11,72,24,234 equity shares (representing 4% stake). The Government of India held 68.29% stake in NMDC as of 31 March 2021.

The floor price for the OFS was Rs 165 per equity share, at a 5.88% discount to NMDC's closing price of Rs 175.30 on the BSE on Monday, 5 July 2021.

The OFS opened on Tuesday (6 July 2021) for non-retail investors, while both retail as well as non-retail investors were allowed to subscribe on Thursday (7 July 2021). A total of 10% of the offer size was reserved for retail investors.

On Tuesday (T day), the OFS received subscription for 22,55,13,374 shares or 213.75% against the base non-retail offer size of 10,55,01,810 shares.

Following the strong response on T day, the government decided to exercise the oversubscription option of 10,22,78,144 shares (3.49% equity) in addition to the base offer.

Accordingly, the final share sale was 21,95,02,378 shares, constituting 7.49% of the paid-up equity share capital of NMDC.

As on 15:30 IST on Wednesday (T+1 day), the OFS received total bids for 2,58,89,338 shares or 117.95% of the total enhanced retail offer size of 2,19,50,239 shares.

The retail segment received bids for 1,65,85,471 shares or 75.56% of the total retail offer size.

The non-retail segment received bids for 93,03,867 shares or 42.39% of the total retail offer size.

NMDC is India's single largest iron ore producer, presently producing about 35 million tonnes of iron ore from 3 fully mechanized mines, two located in Chhattisgarh and one in Karnataka. As on 31 March 2021, the Government of India held 68.29% stake in the company.

On a consolidated basis, NMDC's net profit surged 717.15% to Rs 2,835.54 crore on 114.83% jump in revenue from operations to Rs 6,847.57 crore in Q4 March 2021 over Q4 March 2020.

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