NMDC extends OFS of equity shares to employees

The state-owned miner on Thursday said that it has received approvals to sell around 0.45% of the total shares held by the Government of India through offer for sale (OFS) to the company's eligible employees at Rs 165.50 per equity share.

The President of India, acting through the Ministry of Steel Government of India, is proposing to offer up to 89,08, 907 equity shares of face value of Rs 1 each to the eligible employees of the Company at a price Rs 165.50 per equity share, the company said in a BSE Filing.

The employee OFS shall remain open from Friday, 16 July 2021 to Sunday, 18 July 2021.

Last week, NMDC concluded its offer for sale (OFS) for retail and non retail investors. The OFS opened on 6 July 2021 for non-retail investors, while both retail as well as non-retail investors were allowed to subscribe on 7 July 2021. A total of 10% of the offer size was reserved for retail investors. The floor price for the OFS was Rs 165 per equity share.

On 6 July 2021 (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.

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.

Shares of NMDC were trading 0.78% higher at Rs 174 on BSE.

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