NMDC share price dips by 3% as government opens OFS to offload around 7.5 per cent stake

The shares of state-owned NMDC tumbled by around three per cent to Rs 170.4 per share on the BSE intraday trade today as the government on Tuesday launched an offer for sale to offload up to a 7.49 per cent stake in the company to raise up to Rs 3,620 crore.

The government has proposed to divest about 11,72,24,234 equity shares accounting for 4 per cent of the total issued and paid-up equity share capital of the company. A floor price of Rs165 per equity share has been set in the issue.

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At present, the government holds a 68.29 per cent stake in the mining undertaking.

At around 11:30 am, the scrip was trading around one and a half per cent lower to Rs 172.50 per share, as compared to 0.29 per cent rise in the S&P BSE Sensex.

The government also has an option to additionally sell another 10,22,78,144 equity shares representing a 3.49 per cent stake in the company, which is termed as 'Oversubscription Option'.

Today, only non-retail investors are allowed to subscribe to shares in the offer for sale. While it will continue tomorrow for non-retail investors who choose to carry forward their un-allotted bids and also retail investors are allowed to subscribe.

In the last two sessions, the stock has declined by eight per cent from Rs 185.15 per share on the BSE. The stock had touched its 52-week high of Rs 213.15 per share on May 12, 2021, on BSE.