Government has successfully divested 2.52% of paid-up capital in National Mineral Development Corporation (NMDC) for an amount of around Rs 1,200 crore (Rs 980.05 crore from non-retail investors and around Rs 232 crore from retail investors) through Offer for sale (OFS) mechanism. With this transaction, the Government of India shareholding in NMDC has come down from 74.94% to 72.42%.
Originally, the disinvestment in NMDC OFS was pegged at basic issue size of 1.5% of paid-up capital at floor price of Rs153.50 per share. The issue got over-subscribed by three times the base issue size. To encourage retail participation, a discount of 5% on the cut off price was offered to retail investors. The retail portion has been over-subscribed by 439.64%. The issue has attracted investments from foreign investors and Domestic institutional investors and mutual funds.
NMDC is a state-controlled mineral producer of the Government of India. It is fully owned by the Government of India and is under administrative control of the Ministry of Steel.
