“Offer for sale in NMDC opens tomorrow for non-retail investors, retail investors can bid on Wednesday. Government would divest 4% equity with a 3.49% green shoe option,” department of investment and public asset management (DIPAM) secretary TK Pandey said in a Twitter post Monday.
With the divestment, the government will end up reducing its stake to 60.8% in the iron-ore producer. The floor price for selling a total of 117.2 million shares has been set at a 6% discount from closing price on Monday. NMDC’s scrip closed at Rs 175.3 on the Bombay Stock Exchange.
The proceeds from the sale will take the government towards the target of Rs 1.75 lakh crore set for FY22.
The public sector enterprise reported stellar numbers in the quarter ended March 2021.
Net profit in the last quarter of FY21 was over 800% on-year at Rs 2,835.82 crore, as the company gained from the spike in demand from the iron and steel industry which is the largest consumer of iron ore, besides rising prices globally. Full year profits were also sharply higher by 75.7% at Rs 6,277 crore.
Consolidated revenue was 114.84% higher on-year at Rs 6,847.57 crore while net sales revenues was higher by 57.23% compared to total revenues in the quarter ending December 2020 at Rs 4,355.10 crore.
Full year revenue for FY21 was 31.4% higher at Rs 15,370 crore while for the quarter ended March, revenues more than doubled to Rs 6,807 crore versus the same period in FY20.