In a big ticket disinvestment move, NMDC on Monday filed the draft red herring prospectus (DRHP) with the Securities Exchange Board of India (SEBI) for its follow-on public offer.
The Centre had recently cleared a major disinvestment initiative and had come out with norms for listing of state-owned companies and changes in their shareholding pattern. Through the follow-on public offer of NMDC the government expects to mop up Rs. 20,000 crore. “The company has flied the draft red herring prospectus with SEBI for a further public offer of 33.22 crore equity shares,” NMDC said in a statement.
The government, which is planning to complete the process within this fiscal, will use the proceeds to part fund its various social and infrastructure programmes.
Under the follow-on-public-offer, the Government will be diluting 8.38 per cent of its stake in the miner constituting 33.22 crore equity shares with a face value of one rupee.
The government owns 98.38 per cent in the company while the remaining has already been made public.
Based on Monday’s closing price of Rs. 515.70 on stock exchanges, the government could mop up Rs. 17,133.78 crore from the FPO proceeds. However, the final issue price would be decided by an Empowered Group of Ministers in the first week of February.
The national miner would offer a 5 per cent discount on the issue price to retail investors and its employees.
