State-owned NMDC announced an offer for sale (OFS), which will open on Tuesday for subscription at a floor price of Rs 165. It has been a long-awaited move and the Government of India said that they will be selling close to a 4 percent stake and if demand is strong enough then they will throw another 3.5 percent. In all probability, 7.5 percent is what will hit the market.
At the base price, the Government of India will get at least Rs 3,620 crore.
The Government of India holds around 68.3 percent and if they fulfil the sale of an entire 7.5 percent then its stake comes below the 61 percent odd mark.
Therefore, in terms of timing, the Government of India pretty much got it right because the management spoke to CNBC-TV18, a couple of weeks back, and they said that for this year they are looking at sales volumes of 42 million tonne and that would be a sales volume growth of 25 percent, if they manage to achieve that number.
Watch the accompanying video of CNBC-TV18’s Nigel Dsouza for more details.