The Telegraph
Tuesday , December 11 , 2012
Since 1st March, 1999
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NMDC offer at Rs 145-150

New Delhi, Dec. 10: The government today fixed a price band of Rs 145-150 per share to divest a 10 per cent stake in state-owned mining firm NMDC.

The issue will hit the market on Wednesday, and the divestment will take place through the offer-for-sale route, meaning a separate trading window will be opened for the sale.

The NMDC stock today closed at Rs 154.75 on the Bombay Stock Exchange, down 2.49 per cent from its previous close. During intra-day trade, the scrip touched a high of Rs 157.95 and a low of Rs 150.15.

At present, the government owns 90 per cent in NMDC. Domestic institutional investors hold 8.42 per cent, retail investors 0.92 per cent and foreign institutional investors 0.66 per cent.

NMDC witnessed a 14.7 per cent decline in net sales at Rs 2,611.84 crore and a 14.5 per cent fall in net profit at Rs 1,678.62 crore in the second quarter of this fiscal over the corresponding period of 2011-12.

The country’s largest iron ore producer and exporter produces around 30 million tonnes of ore from three fully mechanised mines in Chhattisgarh and Karnataka.

In February 2008, the government had raised over Rs 9,000 crore by divesting an 8.38 per cent stake in NMDC at Rs 300 per share through a follow-on public offer.

The share sale in NMDC will be the second divestment in this financial year after Hindustan Copper Ltd. The government sold 5.58 per cent in Hindustan Copper to mop up Rs 807 crore.

On October 25, the cabinet committee on economic affairs had approved the NMDC selloff. The government plans to raise Rs 30,000 crore this fiscal through divestments.

Last fiscal, choppy market conditions had thrown the Centre’s selloff programme off track. The government could rake in Rs 14,000 crore against the budgeted target of Rs 40,000 crore.