NMDC slips 2% as government mulls 10% stake sale via OFS
Shares of NMDC tumbled over 3 per cent in Friday's trade after the government said it was looking to divest 10 per cent of its stake in the mining company.
By ET Online |
NEW DELHI: Shares of NMDC tumbled over 2 per cent in Friday's trade after the government said it was looking to divest 10 per cent of its stake in the mining company.
A notification on the department of divestment website said, “The GOI intends to disinvest 10 per cent paid up equity capital (39,64,71,600 shares each of FV Re. 1/-) of NMDC out of its shareholding of 80 per cent, through offer for sale (OFS) of shares by promoters as per SEBI Rules and Regulations.”
Following the notification, the stock declined 3.03 per cent to hit a low of Rs 99 on BSE, before settling the day 2.20 per cent lower at Rs 99.85.
The paid up capital of the NMDC is Rs. 396.47 crore as on March 31. The state-run company is primarily engaged primarily in the business of iron ore mining. But, it is also expanding its activities towards production of steel and other value-added products like pellets.
The company produces 30 million tonne per annum (mtpa) of iron ore that makes it the largest iroin ore producer in India.
The government, meanwhile, is also considering allotting shares to eligible and willing NMDC employees at a discount of 5 per cent to the discovered price (lowest cut off price) up to a maximum of 5 per cent of the OFS size, subsequent to completion of the transaction under OFS.
A notification on the department of divestment website said, “The GOI intends to disinvest 10 per cent paid up equity capital (39,64,71,600 shares each of FV Re. 1/-) of NMDC out of its shareholding of 80 per cent, through offer for sale (OFS) of shares by promoters as per SEBI Rules and Regulations.”
Following the notification, the stock declined 3.03 per cent to hit a low of Rs 99 on BSE, before settling the day 2.20 per cent lower at Rs 99.85.
The paid up capital of the NMDC is Rs. 396.47 crore as on March 31. The state-run company is primarily engaged primarily in the business of iron ore mining. But, it is also expanding its activities towards production of steel and other value-added products like pellets.
The company produces 30 million tonne per annum (mtpa) of iron ore that makes it the largest iroin ore producer in India.
The government, meanwhile, is also considering allotting shares to eligible and willing NMDC employees at a discount of 5 per cent to the discovered price (lowest cut off price) up to a maximum of 5 per cent of the OFS size, subsequent to completion of the transaction under OFS.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
