NMDC OFS subscribed 1.7 times, share tanks over 4%

NMDC's offer for sale (OFS), which was open for only non-retail investors today, subscribed 1.7 times. Both retail and non-retail investors will be able to bid tomorrow (January 10, 2018).
 
Minimum 20% of the offer shares is reserved for allocation to retail investors and 25% is reserved for mutual funds and insurance companies. Retail investors will also be eligible for a discount of 5%, according to an India Infoline report.
 
The government owns 74.94% stake in the iron ore producer NMDC (as per September 2017 shareholding declared on the BSE). 
 
The government had targeted Rs 72,500cr for FY18 in order to lower fiscal deficit.
 
The divestment includes Rs 46,500cr in Central Public Sector Enterprises (CPSEs), Rs 15,000cr from strategic disinvestment, and Rs 11,000cr from listing of insurance companies, the report said. It had achieved Rs 53,833.05cr of divestment as of January 02.
 
NMDC share closed 4.48% down, at Rs 154.6, from its previous closing of Rs 161.85 on the BSE.