The price band for the follow-on offer of Navratna company NMDC will be fixed by March 9, company CMD Rana Som said on Thursday.

“The issue is slated to hit the market on March 10 and close on March 12. The price band will be fixed on March 8 night or the next day morning,” Mr. Som told reporters here.

The price band and minimum bid lots will be decided by an Empowered Group of Ministers in consultation with the book running lead managers (BRLMs), he added.

“The company has decided to offer a discount of five per cent to the offer price for retail individual bidders and eligible employees,” Mr. Som said.

The FPO comprises a net offer to the public of over 33 crore equity shares of face value of Re 1 each. It shall constitute up to 8.38 per cent of the post-offer paid-up equity share capital of the mining company.

The proceeds of the issue will be used to fund the mining giant’s capital expenditure programme.

“The company has taken up a capex of Rs 26,500 crore over the next five years. The company plans to expand and establish its presence as an integrated producer of iron and steel through selective value—addition projects,” Mr. Som said.

NMDC has signed an MoU with the Chhattisgarh government to develop a steel plant with a capacity of 3 million tonnes per annum at Jagdalpur with an investment of Rs 15,500 crore.

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