NMDC drops by 4 per cent as offer for sale unfolds

The share price of the iron ore mining company NMDC plunged sharply on the bourses during Tuesday’s trade after the floor price of its forthcoming two-day offer for sale was set as Rs. 153.50 per share.

The set price of Rs. 153.50 per share is the price at which the scrip will be opened for the non-retail as well as retail investors. The price is set at a discount of 5.15 per cent on Monday’s closing price of Rs. 161.85 per share on BSE. The government will be divesting 1.5 per cent stake worth Rs. 750 crore in the state-run iron ore miner.

In Tuesday’s trade, the stock plunged to an intraday low of Rs. 154.95 per share, down by 4.26 per cent on BSE. The stock remained in the negative territory through out the trade. It had hit its 52-week high of Rs. 162.55 per share on Monday, January 8, 2018.

The company also posted its iron ore production and sales figures upto the month of December 2017. The company’s total production for the period stood at 24.23 MT and the sales of the products stood at 25.64 MT.

At 1210 hours IST, the stock was trading at Rs. 155.65 per share, lower by 3.83 per cent on BSE. Meanwhile, S&P BSE Sensex was trading at 34,410.57 level, higher by 0.15 per cent and NSE Nifty 50 was trading flat at 10,623.50 level.