Subscribe NMDC FPO: RR Financial Research

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RR Financial Research has come out with a research report on NMDC follow-on public offer (FPO). The research firm has recommend investor to Subscribe the issue.

The government has fixed the National Minerals Development Corporation (NMDC) FPO price band at Rs 300 to 350 per share. This translates into a discount of 12.7% to 25.2% to the current market price. The market was expecting a mid-point or a lower price band of Rs 300. The issue opens from March 10-12.

RR Financial Research report:

The pricing for the disinvestment of an 8.38% stake in NMDC will be decided on March 8 by an empowered group of ministers headed by finance minister Pranab Mukherjee. The issue is scheduled to open for subscription on March 10.At the discount of 30-35% the stock will be available at 23x P/E ,FY2011E EPS at 12.6.At this price it will be available relatively cheaper as sector P/E stands at 38.20. We recommend investors subscribe to the issue.

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To read the full report click on the attachment