Government divests 2.52 % of paid-up capital in National Mineral Development Corporation

Government divests 2.52 % of paid-up capital in National Mineral Development Corporation

Issue gets over-subscribed by three times the base issue size

Government has successfully divested 2.52 % of paid-up capital in National Mineral Development Corporation (NMDC) for an amount of ₹ 1200 crore approx. (Rs. 980.05 crore from non-retail investors and ₹ 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% of paid-up capital at floor price of ₹ 153.50 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.

With this transaction, the Government of India shareholding in NMDC has come down from 74.94% to 72.42%.