NMDC’s FPO response to be evident by day-end

NMDC-LtdWhile the analysts are of a view that the NMDC FPO is way too over-priced and hence investors are shying away from the offer but the company believes that the whole response will be clear by the end of the day today. The company has said the lack of interest from FIIs is primarily because of the time zone difference and it expects the FIIs to pitch in by the end of the day.

Nevertheless, LIC and top lender State Bank of India subscribed for stock worth Rs 60 billion (USD 1.3 billion) and Rs 5 billion, respectively and are two of the biggest investor in the NMDC FPO. However, retail investors, foreign institutional investors and mutual funds have hardly shown any interest in the offer so far.

NMDC's FPO is a part of the disinvestment scheme that the Government is planning to apply to 60 PSUs and hence making the liquidity inflow better for the state-owned units. Earlier, the response to NTPC FPO has also seen a similar trend but it will be interesting to see how the FII and HNIs react to the NMDC FPO on the last day.




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