New Delhi: State-run mining major NMDC on Monday said it has fixed the issue price of its further public offer of 33.22 crore equity shares at the lower end of the price band at Rs300 a piece.

Besides, the Navratna PSU has offered a 5% discount to retail investors and employees at Rs285 per share, NMDC said in a filing to the National Stock Exchange.

The $2 billion follow-on public offer (FPO) of the country’s largest iron ore miner was subscribed 1.25, backed mainly by state run financial institution LIC.

The mining giant’s public offer of 33.22 crore shares in the price band of Rs300-350 per piece was open between 10 March and 12 March.

During the FPO, 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.

NMDC FPO is the third public offer in 2010 by the UPA government under its divestment plan. NTPC follow-on offer was subscribed 1.29 times, while the REC issue was subscribed over three times.

The government is divesting 8.38% of its 98.38% holding in NMDC through the FPO.

On the NSE, shares of NMDC Ltd were quoting at Rs348.55, down by 3.91%.