Further disinvestment of the government stakes in the National Mineral Development Corporation (NMDC) through a follow-on public offer (FPO) is likely to hit the markets in early 2010, said a senior steel ministry official on Monday.
The government has already invited applications for appointment of lead managers for the sale, which got cabinet approval last week.
The government intends to sell 8.38 per cent stake in the company that would raise over Rs 13,500 crore for the national exchequer on current rates. Post this, the government’s holding in the company would come down to 90 per cent.
“The decks are being cleared for the stake sale which would happen on the advice of the lead managers,” said the official, who cannot be named as he is not authorised to speak to the media. “The other PSU, Steel Authority of India Ltd’s two-phased disinvestment is also likely to get Cabinet approval by end of this year. SAIL would however hit the market only by March.”
SAIL and NMDC with a market capitalisation of Rs 87,957 crore and Rs 1,65,943 crore respectively, are two of the biggest companies in the mines and metals space.