Sunday, April 4, 2010

NMDC FPO - Analysis,Subscription,Allotment,Listing

NMDC Ltd is a fully Government of India owned public enterprise. NMDC is under the administrative control of the Ministry of Steel, Government of India. NMDC involved in the exploration of wide range of minerals including iron ore, copper, rock phosphate, lime stone, dolomite, gypsum, bentonite, magnesite, diamond, tin, tungsten, graphite, beach sands etc.

The company has come out with its public offer of 33.22 crore equity shares in the price band of Rs 300-350 per piece. The issue opened on March 10 and closes on March 12. The government is divesting 8.38 per cent of its 98.38 per cent holding in the company through the process. At the upper end of the price range, the offer is valued at Rs 11,700 crore, whereas at the lower end it is worth Rs 9,900 crore.
 
The FPO just managed to get fully subscribed at 1.23 times. At the close of the FPO,
QII segment got subscribed 2.28 times
NII segment got subscribed 0.22 times
Retail segment got subscribed 0.21 times
Employee reservation segment got subscribed 0.066 times
 
Click here to check if you have been alloted NMDC shares!
 
The govt needs to get the FPO pricing right for the next divestment. NMDC followed a similar result as NTPC. The FPO opened at a lower price than its issue price. Against the issue price of Rs. 300, the FPO d at Rs. 295, went to a high of Rs. 296 and a low of Rs. 283 before closing the day at Rs. 284.7, a discount of 5%.


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