Monday, March 8, 2010

NMDC FPO Price has been fixed at Rs. 300- Rs.350

Indian government fixed the NMDC FPO price at Rs. 300-350 per share. The empowered group of ministers met on March 8, 2010 and fixed the NMDC FPO price for the state-run mining company. With this new price range, the company would be able to collect Rs. 11.700 crore. Compared to the current market price, investors are receiving the shares at a discount of 12.9-25.3%.

NMDC has a large reserve of high-grade iron ore and the way Indian steel industry is growing, demand would further go up and production cost is below the “Global average”. Moreover, the company is investing a lot of money to diversify its business.

NMDC is a public enterprise incorporated in 1958. Currently, it is overlooked by the Ministry of Steel. NMDC is involved in mining a wide range of materials including iron ore, copper, rock phosphate, lime stone, dolomite, gypsum, bentonite, magnesite, diamond, tin, tungsten, graphite, beach sands. It is the largest iron ore producer and exporter in India producing about 30 million tons of iron from three fully mechanized mines. NMDC also has the only mechanized diamond mind in the country with a capacity of 1.00 lakh carats per year at Panna. It is also only mechanized diamond mine in Asia.

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The Hindu Business Line

Money Control

1 comment:

  1. Price band is mentioned in n different sites ,but lot size ? Middle class does not have much money left with them after a host of IPOs/FPOs.