India's NMDC takes beating after follow-on prices at bottom

Foreign investors contribute only 2.2% of the QIB order volume as valuations are deemed too aggressive, but the government gets $2.18 billion to plug holes in its budget.

Shares in India's largest iron ore producer NMDC fell another 3.2% yesterday to extend their two-day loss to 8% after the company announced that the government sell-down last week had to be priced at the bottom of the offering range because of thin, and highly price sensitive, demand.

However, even with the sharp sell-off -- shares in the state-owned company have lost 20% of their value since the price range was first announced pre-opening on March 8 -- the share price is still holding above the final follow-on price.

At a price of Rs300 per share retail accounts and company employees received a 5% discount, the government was able to raise about Rs99.29 billion...

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