The government today said it has fixed the price band of NMDC FPO at

RELATED ARTICLES Sensex snaps two-day rally, down 82 pts on poor IIP nos Sensex up 123 pts in late buying amid firm European mkts Thomas Cook PLC starts process of stake sale in Indian arm Sensex closes 85 points up in volatile trade Sensex snaps 5 day rally on low growth estimates

Rs 300-350 a share, a hefty discount of 25 per cent from its last closing of Rs 400 a piece on the BSE, to attract retail investors.

"The Empowered Group of Ministers yesterday fixed a price band of Rs 300-350 for the FPO, which opens tomorrow and closes on March 12," NMDC CMD Rana Som told reporters here.

Analysts said the government has offered attractive discount, apparently not wanting the risk its last divestment in PSUs this fiscal in which it aims to garner Rs 25,000 crore.

Earlier, the share sale programme of two other PSUs NTPC and REC just managed to scrape through as investors, particularly retail investor, had cold-shouldered them because they felt the offer price was high.

Som sounded confident that the follow-on offer would get an overwhelming response.

The 25 per cent discount is given on yesterday's closing of Rs 400 a share on the Bombay Stock Exchange. Reacting to the development, shares of the company fell by a maximum of about 9 per cent before closing at Rs 375.65, down 6 per cent than last closing on the BSE.

Present on the occasion, Disinvestment Secretary Sumit Bose said NMDC's FPO is different from that of the two power on account of its intrinsic value of the miner and the mode of sale of shares adopted.

"We are offering a price band in case of NMDC FPO as against the French auction adopted in case of NTPC and REC," Bose said.

The government is selling 8.38 per cent of its equity in the company or 33.22 crore shares at a face value of Rs 1 through the FPO and expects to raise a maximum of Rs 11,700 crore.