The Indian government said it has successfully divested 2.52 % of paid-up capital in National Mineral Development Corporation (NMDC) for an amount of Rs. 1200 crore approx. (Rs. 980.05 crore from non-retail investors and Rs. 232 crore approx. from retail investors) through offer for sale (OFS) mechanism.
Originally, the disinvestment in NMDC OFS was pegged at basic issue size of 1.5% of paid-up capital at floor price of Rs.153.50 per share, it said in a statement, adding that the issue got over-subscribed by three times the base issue size.
To encourage retail participation, a discount of 5% on the cut off price was offered to retail investors. The retail portion has been over-subscribed by 439.64%.
The issue attracted investments from foreign investors and domestic institutional investors and mutual funds.
With this transaction, the Government of India shareholding in NMDC has come down from 74.94% to 72.42%.