NMDC slips as OFS begins

NMDC fell 1.45% to Rs 172.75 after the offer for sale (OFS) opened for non-retail investors today, 6 July 2021.

Through the OFS, the Government of India proposes to sell up to 11,72,24,234 equity shares (representing 4% stake), with an option to sell an additional 3.49% stake or 10,22,78,144 equity shares in case of oversubscription.

The floor price for the OFS is 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 total OFS size (base size + green shoe) stands at 21,95,02,378 shares, representing 7.49% of outstanding equity shares of the company, aggregating to Rs 3,621.78 crore.

The Government of India held 68.29% stake in NMDC as of 31 March 2021.

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

As on 12:15 IST, the OFS received subscription for 2,54,04,190 shares. It was subscribed 24.08% on the base non-retail offer size of 10,55,01,810 shares and 12.86% on the total non-retail offer size (base size + green shoe) of 19,75,52,139 shares.

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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