Post-FPO, NMDC nosedives 5 per cent

MUMBAI: The shares of the state-run mining giant NMDC on Monday declined nearly 5 per cent after it fixed the issue price of its follow-on public offer at the lower end of the price band at Rs 300 a piece.

The scrip, which opened on a weak note at Rs 342.30, ended the trade at Rs 344.60, down by 4.99 per cent over its last close on the on the Bombay Stock Exchange.

On the National Stock Exchange, it settled at Rs 341, down by 6 per cent. Over 23.39 lakh shares changed hands on the two bourses.

NMDC today fixed the issue price of its FPO of 33.22 crore equity shares at Rs 300 apiece, the lower end of the price band. Besides, the Navratna company has offered a 5 per cent discount to retail investors and employees at Rs 285 per share, NMDC said in a filing to the bourses.

The USD 2-billion FPO was subscribed just 1.25 times, backed mainly by state run financial institution LIC.

During the FPO, whcih was open from March 10 to 12, most of the bids came in at the lower end of the price band, which analysts feel, prompted the government to fix the issue price at the lower end.

With the issue government stake has come down by 8.38 per cent from 98.38 per cent to 90 per cent.