Shares of NMDC today fell sharply by nearly 9 per cent in early trade

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on the Bombay Stock Exchange, a day after the government fixed the price band at Rs 300-350 for the further public offer of the mining giant.

NMDC fell by 8.89 per cent tot Rs 376 on BSE, while the market barometer Sensex was trading flat in morning trade.

Meanwhile, on the National Stock Exchange the scrip plunged 9.12 per cent to Rs 365.20.

The price band of the 33-crore-share issue of NMDC has been fixed at Rs 300-350, which is lower by 13-25 per cent over the Monday's closing level. If fully subscribed at the upper end of the price band, the government would be able to mop up Rs 11,690 crore.

The government plans to divest 8.38 per cent stake in NMDC through the FPO, which opens tomorrow. The issue would close on March 12.

The scrip has lost over 20 per cent over the past one month amid government efforts to sell stakes in companies to narrow its fiscal deficit.

The Centre, at present, holds 98.38 per cent stake in the country's largest iron ore producer.