NMDC fixes Issue Price of FPO at Lower End - Indian IPO Blog

Indian IPO Blog

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Monday, March 15, 2010

NMDC fixes Issue Price of FPO at Lower End

The Issue Price for the Follow-on Public Offer of NMDC Ltd. is fixed at Rs.300/- per equity share, which is the floor price of the Price Band of Rs.300/- to Rs.350/- per equity share. As declared earlier, Retail Investors will receive a 5% Discount on the Issue Price. Thus, Retail Investors will get Rs.15 as discount to the Issue Price of Rs.300. Consequently, the Retail Investors will get Equity Shares at Rs.285/- per equity share

The Follow-on Public Offer (FPO) of National Mineral Development Corporation (NMDC) Limited, a fully owned Government of India public enterprise, which had opened for subscription from Wednesday, March 10, 2010, had received an average response from Investors with the IPO finally getting subscribed 1.25 times on an overall basis, with major subscription coming only from the QIB Category, which was overbid 2.28 times.

The response from the other categories was also keen. Even the response from Retail Investors was unenthusiastic with the FPO managing only 22% subscription in Retail Category

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