The follow-on public offer (FPO) of state-run iron ore miner NMDC was subscribed 79% at the end of the second day of the issue today, 11 March 2010. The issue closes on Friday, 12 March 2010.
The government is divesting 8.38% stake in NMDC through the FPO as a part of its aggressive divestment drive to raise funds in a bid to bring fiscal deficit down. The price band has been fixed between Rs 300 and 350 a piece.
NMDC has access to significant reserves of high grade iron ore, predominantly greater than 64% Fe content. The company is one of the lowest cost producers of iron ore, resulting in strong margins.