Contact Your Financial Adviser Money Making MC
8
January 2018
 |
NMDC (The Total Investment
& Insurance Solutions)
The
government has announced a stake sale in NMDC through the Offer For Sale (OFS)
route. The government plans to sell 4.74cr shares in the company via OFS over
9-10 January, 2018. The floor price for the OFS is Rs153.5, a 5.4% discount to
today’s closing price. The OFS would raise Rs728cr for the government assuming
that the allocation price is the same as the floor price.
A minimum of 25% is reserved for institutional investors (Mutual Funds and Insurance companies) and 20% is reserved for retail investors. Retail investors would also receive a 5% discount to their allocation price. The offer for Non-retail investors would be open on January 9, and for retail investors the OFS would be open on January 10. The Total Investment & Insurance Solutions
NMDC Ltd ended at Rs161.85, up by Rs3.35 or 2.11% from its previous closing of Rs158.5 on the BSE. The scrip opened at Rs 158.9 and touched a high and low of Rs 162.55 and Rs 158.5 respectively.
NMDC Limited is an India-based company engaged in mining of iron ore and has produced 36MT in FY17. The company has three fully mechanised mines viz., Bailadila Deposit–14/11C, Bailadila Deposit–5, 10/11A (Chhattisgarh) and Donimalai Mines (Karnataka). The Total Investment & Insurance Solutions
We see robust steel capacity expansion in the country to lift volumes for the company. In addition, company plans to raise its capacity by 34MTPA to 50MTPA by FY19E. Thereby, we expect revenue to reach 11% CAGR over FY17-19E. We expect recent price revisions and robust volume growth to aid margin expansion of 1100 bps to 52% by FY19E. Going ahead we see cash flow accretion to be hindered due to expansion commitments. However, considering heavy capacity expansion and strong margin growth we see bottom-line to post 18% CAGR over FY17-19EThe Total Investment & Insurance Solutions
A minimum of 25% is reserved for institutional investors (Mutual Funds and Insurance companies) and 20% is reserved for retail investors. Retail investors would also receive a 5% discount to their allocation price. The offer for Non-retail investors would be open on January 9, and for retail investors the OFS would be open on January 10. The Total Investment & Insurance Solutions
NMDC Ltd ended at Rs161.85, up by Rs3.35 or 2.11% from its previous closing of Rs158.5 on the BSE. The scrip opened at Rs 158.9 and touched a high and low of Rs 162.55 and Rs 158.5 respectively.
NMDC Limited is an India-based company engaged in mining of iron ore and has produced 36MT in FY17. The company has three fully mechanised mines viz., Bailadila Deposit–14/11C, Bailadila Deposit–5, 10/11A (Chhattisgarh) and Donimalai Mines (Karnataka). The Total Investment & Insurance Solutions
We see robust steel capacity expansion in the country to lift volumes for the company. In addition, company plans to raise its capacity by 34MTPA to 50MTPA by FY19E. Thereby, we expect revenue to reach 11% CAGR over FY17-19E. We expect recent price revisions and robust volume growth to aid margin expansion of 1100 bps to 52% by FY19E. Going ahead we see cash flow accretion to be hindered due to expansion commitments. However, considering heavy capacity expansion and strong margin growth we see bottom-line to post 18% CAGR over FY17-19EThe Total Investment & Insurance Solutions
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