Offer for Sale in NMDC opens tomorrow for non-retail investors
Government is set to sell 7.49% stake in NMDC Ltd through an offer for sale (OFS) which could help it garner around ₹3800 crore for its disinvestment kitty.
“Offer for Sale in NMDC opens tomorrow for non-retail investors. Retail investors can bid on Wednesday. Govt. would divest 4% equity with a 3.49% Green Shoe option," Department of Investment and Public Asset Management secretary Tuhin Kanta Pandey tweeted on Monday.
NMDC Ltd informed stock exchanges that proposes to sell 4% promoter stake with an option to additionally sell 3.49% stake through a separate, designated window collectively representing 7.49% of the total issued and paid-up equity share capital of the company.
The OFS will open on Tuesday for non-retail investors and on Wednesday for retail investors at a floor price of ₹165 per share. On Monday, the share price closed at ₹175.3 falling 4.1% from its previous close.
The central government in its first disinvestment of FY22 garnered ₹3994 crore in May from its 1.95% stake sale in Axis Bank held through the Specified Undertaking of the Unit Trust of India (SUUTI).
The government’s ambitious disinvestment schedule for FY22 may get delayed because of the second wave of the covid-19 pandemic, Pandey said at Mint India Investment Summit 2021 in April. Pandey, however, exuded confidence that the ₹1.75 trillion target is still achievable. With revenues expected to shrink for the second consecutive year in FY22, achieving the disinvestment target will be crucial for the finance ministry.