Shares of NMDC Ltd were under pressure on Tuesday following the Centre's plan to offload 7.49% stake in the mining major remains through an offer for sale (OFS). The government plans to sell up to 11,72,24,234 equity shares of NMDC, or 4% the total paid-up equity, with an option to sell another 10,22,78,144 equity shares (3.49%) in case of oversubscription. The fall in share price comes despite strong Q4 results reported by NMDC, healthy demand for iron ore and robust realisations. A steady rise in global iron prices has meant that NMDC has seen its realisations improve. Analysts at Antique Stock Broking in their note dated 24 June had said that higher domestic steel production, firm international ore prices and steady domestic steel prices would support domestic iron ore prices.

Source: Mint July 06, 2021 06:11 UTC