NMDC gains ahead of share sale on Wednesday

The announcement was made after market hours on Monday, 10 December 2012.

Meanwhile, the BSE Sensex was up 153.97 points, or 0.79%, to 19,563.66.

On BSE, 1.37 lakh shares were traded in the counter as against an average daily volume of 49,841 shares in the past one quarter.

The stock hit a high of Rs 158.90 and a low of Rs 151.40 so far during the day. The stock had hit a 52-week high of Rs 206.35 on 16 February 2012. The stock had hit a 52-week low of Rs 136.15 on 20 December 2011.

The stock had underperformed the market over the past one month till 10 December 2012, falling 13.67% compared with the Sensex's 3.89% rise. The scrip had also underperformed the market in past one quarter, sliding 19.25% as against Sensex's 9.25% rise.

 

The large-cap state-run firm has an equity capital of Rs 396.47 crore. Face value per share is Re 1.

The Offer for Sale (OFS) will take place from 9:15 IST to 15:30 IST on Wednesday, 12 December 2012. The government will announce the floor price for OFS after trading hours today, 11 December 2012.

A minimum of 25% of the shares being offered shall be reserved for allocation to mutual funds and insurance companies.

As on 30 September 2012, the government owned 90% stake in NMDC. In February 2008, the government had raised over Rs 9000 crore through divesting an 8.38% stake in NMDC at Rs 300 per share through a follow on public offer.

The government has set a target of raising Rs 30000 crore in the year ending 31 March 2013 through the disinvestment process.

NMDC's net profit fell 14.5% to Rs 1678.62 crore on 14.7% decline in net sales to Rs 2611.84 crore in Q2 September 2012 over Q2 September 2011.

State-run NMDC is India's single largest iron ore producer and exporter, presently producing about 30 million tonnes of iron ore from 3 fully mechanized mines in Chhattisgarh and Karnataka.

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