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Home >Markets >Stock Markets >NMDC OFS over-subscribed 2.13 times on Day 1

Government’s offer for sale (OFS) of 7.49% stake in the public sector undertaking NMDC Ltd which opened on Tuesday for non-retail investors got to a good start with the issue getting over-subscribed 2.13 times.

“Offer for Sale of Govt shares in NMDC got great response on day one. Issue subscribed 2.13 times of base size at a clearing price above the floor price by non-retail investors. Govt has decided to exercise the green shoe option. Retail investors get chance to bid tomorrow," Department of Investment and Public Asset Management secretary Tuhin Kanta Pandey tweeted.

NMDC Ltd on Monday informed stock exchanges that the government proposes to sell 4% stake at a floor price of 165 per share 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 Wednesday for retail investors. On Tuesday, the share price closed at 168.45 falling 3.88% 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.

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