NMDCs FPO share sale received bids for only 17% of the offer on 1st Day as investors are not much interested due to it's steep stock valuations.
The company has come out with FPO of 332,243,200 Equity Shares of Rs 1 each for cash at a price band of Rs.300 to Rs.350 through 100% book building process.
Bulk of the bids received were at the lower end of the price band between Rs 301 and Rs 300.
The bids on Wednesday were mostly from the government-owned Life Insurance Corporation (LIC) and state-owned banks such as Bank of Baroda and at the bottom-end of the Rs 300-350 range set for bids. Overseas funds interest was negligible,said bankers familiar with the situation. The government is selling 33.2 crore shares,or 8.4%,of the nations largest and low-cost producer of iron ore to raise as much as $2.5 billion to bridge its fiscal deficit.
The FPO closes for subscription on March 12, 2010.
