In what is likely to be the first disinvestment in the current fiscal year, the government is planning to offload 10% stake in India's largest iron ore miner National Mineral Development Corporation (NMDC) by mid-December and raise Rs. 7,500 crore, said DRS Chaudhary, steel secretary, on
Thursday.
"The process has already begun. Roadshows are being organised."
Post divestment, the government's stake in the company would fall to 80%. About 39 crore equity of the firm with a face value of R1 would be offered by the promoters through stock exchanges.
The divestment was cleared by the Cabinet Committee on Economic Affairs on October 25.
The government hopes to mop up Rs. 30,000 crore through divestment in public sector companies during the current fiscal year.
Besides NMDC, the government is also looking to sell stakes in Hindustan Copper and Oil India. Though the three stake sales are expected to fetch Rs. 12,000 crore, the government is yet to open its account.
It had missed the Rs. 40,000-crore target last year and managed to garner only Rs. 14,000 crore as bad market conditions forced it to defer divestment in many firms including NMDC and Steel Authority of India Ltd.
ALMT Legal, Advocates & Solicitors have been appointed as legal adviser for the stake sale while Citigroup Global Markets India, Goldman Sachs (India) Securities, DSP Merrill Lynch , Enam Securities and ICICI Securities are the merchant bankers.