Advertisement

HindustanTimes Sat,23 Aug 2014

NMDC stake sale in Dec, govt eyes Rs. 7,500 cr from 10%

HT Correspondent, Hindustan Times  New Delhi, November 15, 2012
First Published: 23:12 IST(15/11/2012) | Last Updated: 03:17 IST(16/11/2012)

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.

Advertisement

"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.

http://www.hindustantimes.com/Images/Popup/2012/11/16-11-12-BIZ-04.jpg

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.


Advertisement
more from Business

All companies must apply 2-step payments for credit cards: RBI

RBI said that all transactions involving domestic credit cards must follow rules requiring additional verification, a stance that could impact companies such as Uber Technologies Inc that provide more simple app-based purchases.
markets
Advertisement
Most Popular
Advertisement
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved