NMDC may file revised draft papers for selloff soon

NEW DELHI: The state-run mining major NMDC is likely to file a revised set of papers for its follow-on- public offer with the Securities and Exchange Board this week after incorporating the market regulator's comments on its draft prospectus submitted last month.

"NMDC is expecting SEBI's comments on draft prospectus on Monday. The company will incorporate the comments and will file the red herring prospectus to the regulator later this week," a finance ministry official told.

The government is selling 8.38 per cent of its stake in the country's largest iron ore producer through an FPO which is likely to take place in March. The government at present owns 98.38 percent equity in the company and the rest has already been made public.

"The FPO is expected to fetch the exchequer around Rs 20,000 crore. Though the final amount will depend on the issue price which will be decided by an empowered group of ministers likely to meet early March," he added.

NMDC filed for the FPO on January 25. The NMDC shares closed down 0.06 percent at Rs 485.45 on the Bombay Stock Exchange.

The miner would offer 5 per cent discount on the issue price to retail investors and its employees. NMDC plans to reserve 50 per cent shares on offer for qualified buyers, 35 percent for retail investors and about 15 percent for high networth individuals.