Government has successfully divested 2.52 per cent of paid-up capital in National Mineral Development Corporation (NMDC) for an amount of Rs 1200 crore approx. (Rs. 980.05 crore from non-retail investors and Rs. 232 crore approx. from retail investors) through Offer for sale (OFS) mechanism.
Originally, the disinvestment in NMDC OFS was pegged at basic issue size of 1.5 per cent of paid-up capital at floor price of Rs.153.50 per share. The issue got over-subscribed by three times the base issue size.
To encourage retail participation, a discount of 5 per cent on the cut off price was offered to retail investors. The retail portion has been over-subscribed by 439.64 per cent.
The issue has attracted investments from foreign investors and Domestic institutional investors and mutual funds.
With this transaction, the Government of India shareholding in NMDC has come down from 74.94 per cent to 72.42 per cent.