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Govt may disinvest 10% equity in NMDC this week

PTI  New Delhi, December 09, 2012
First Published: 20:36 IST(9/12/2012) | Last Updated: 20:41 IST(9/12/2012)

The government is likely to sell its 10% equity this week in iron ore miner NMDC, which could fetch the exchequer nearly Rs. 6,300 crore at the current market price.

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"The stake sale in NMDC would happen either on Thursday or Friday. The date and price will be finalised by the empowered group of ministers, which is expected to meet on Tuesday," a senior government official said.

The Cabinet Committee on Economic Affairs on October 25 approved disinvestment of 10% government shares in NMDC, amounting to 39,64,71,600 shares of face value of Rs. 1 each to investors through "offer for the sale" route, also known as auction route.

The NMDC issue comes within a month after government selling its 5.58% stake in Hindustan Copper Ltd (HCL) for about Rs. 807 crore.

At Friday's closing price of Rs. 158.7 apiece of shares NMDC at the BSE, 10% share sale would fetch a little over R6,292 crore, if the offer is fully subscribed.

"Unlike HCL issue, the base price for NMDC share sale will not see steep discount and will be maximum in the range of 10 to 15%," the official said.

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