NMDC likely to file for FPO tomorrow, may mop-up Rs 20,000-cr

"NMDC will file the draft red herring prospectus (DRHP) for the follow-on public offer (FPO) on Monday. The NMDC board cleared the DRHP for the FPO on Saturday," a person in the know of the development said.

The Government is selling 8.38 per cent of its stake in the miner and at the Friday's closing price it will be able to mop up a hefty Rs 20,000 crore from the process.

The NMDC counter closed at Rs 532.50, up seven per cent on the BSE on Friday over Thursday's closing price, when the benchmark index fell over one percent.

The Government currently holds about 98.38 per cent in the Navratna mineral company, as the rest is already with the public. It had diluted its 1.62 per cent stake of the firm in 1996 by allotting to its employees and some to qualified institutional buyers.

The government is planning to complete the FPO by the end of this fiscal.

"An empowered group of ministers in early March will decide the issue price for the FPO which could be launched by March 9-10 and mobilise Rs 20,000 crore," the source added. After issuing a very small portion of the shares to be channelised in FPO to its employees, NMDC plans to reserve 50 per cent shares for qualified buyers, 35 per cent for retail investors and about 15 per cent for high networth individuals.

The Government had appointed book runners-cum-lead managers comprising Citigroup, Kotak Mahindra, RBS Equities, UBS Securities, Morgan Stanley and Edelweiss Capital to advice it on the FPO programme.

It had also shortlisted the Mumbai-based law firm Crawford Bayley to advice it on the share sale.The Government will be using the entire NMDC proceeds to part fund its various social and infrastructure programmes.

Assembly elections 2019 | Get the latest news, views and analysis on elections in Haryana and Maharashtra on DeccanHerald.com


For election-related news in Maharashtra, click here

For election-related news in Haryana, click here

DH Newsletter Privacy Policy Get top news in your inbox daily
GET IT
Comments (+)