Led by the mega issue of State-run NMDC, three companies will open their public offerings this week, setting the tone for the overall market sentiment.
NMDC - the country’s largest iron ore producer - is coming out with its follow-on public offer (FPO) of over 33 crore shares or 8.38 per cent stake. The issue opens on March 10 and closes on March 12.
The public issue of NMDC Ltd is expected to mop up about Rs. 10,000 crore to Rs. 12,000 crore. The price band of FPO will be decided by an Empowered Group of Ministers tomorrow.
Market men believe that the issue will sail through as the company may offer big discount in price band compared to its current market price. On Friday, shares of NMDC closed at Rs. 416.65, down by 4.49 per cent on the National Stock Exchange.
“It is a unique company in the country and investors are enthusiastic about the issue. The FPO would get good response from both the institutional and retail investors,” said Bonanza Portfolio VP (Equity & Institutional Sales) R. L. Narayanan.
Meanwhile, the initial public offering (IPO) of animation and gaming company DQ Entertainment (International) Ltd opens on Monday.
The company is coming out with its IPO in capital markets with an issue size of 1.60 crore equity shares in the price range of Rs. 75 to Rs. 80 per share. The IPO closes on March 10.
Another IPO from textile manufacturer Pradip Overseas will open on March 11.
