NMDC drops 4% as OFS' floor price set at 5% discount

NEW DELHI: Shares of NMDC dropped over 4 per cent in Tuesday's trade after the mining company set Rs 153.50 as the floor price for its forthcoming two-day offer for sale (OFS).

At this price the issue, which will be opened for non-retail investors on Wednesday and retail investors on Thursday, was at 5.15 per cent discount to Monday's closing price of Rs 161.85 on BSE.

Following the announcement, the stock fell to hit a low of Rs 154.10 on the exchange. It eventually closed 4.48 per cent down at Rs 154.60 on Tuesday.


The government will divest 1.5 per cent stake in the state-run company, aggregating Rs 750 crore.

It also has kept a green-shoe option to retain over-subscription of a further 1.5 per cent. Retal investors will be allocated shares at a discount 5 per cent to the cut-off price.