India is likely to set the floor price for a follow-on share sale in state-run miner NMDC Ltd (NMDC.BO: Quote, Profile, Research) at 30-35 percent lower than the market price, the Economic Times said on Friday, citing unnamed bankers and a government official involved in the process.
Shares in NMDC, India's largest iron ore producer, closed at 435.15 rupees ($9.50) on Thursday.
The floor price could be set at 300 rupees, or 30 percent below the market price, fetching the government about 90 billion rupees, it quoted a banker to the share sale as saying.
The follow-on offer is scheduled to open March 10-12 and the indicative price range is expected to be set on Monday after a meeting of a panel of ministers [ID:nSGE61N0JW].
The steep discount is being considered to attract foreign investors who think the stock is overvalued, the paper said.
Last month a $1.8 billion share sale by No.1 Indian utility NTPC Ltd (NTPC.BO: Quote, Profile, Research) received a muted response, with retail investors showing very little interest.
Source : http://in.reuters.com/article/domesticNews/idINSGE61I03520100305
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