NMDC disinvestment likely by mid-Dec
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The government today said it is planning 10 per cent stake sale in NMDC by mid-December, which could fetch the exchequer about Rs 7,500 crore.
"NMDC disinvestment is likely by mid-December. We hope to raise Rs 7,500 crore via 10 per cent share sale in it," Steel Secretary D R S Chaudhary said on the sidelines of inaugural function of steel pavellion in the India International Trade Fair here.
The Finance Ministry last week had said it is looking at divesting stakes in three PSUs-- Hindustan Copper, NMDC and Oil India by end December, which may fetch Rs 12,000 crore to the exchequer.
Steel Minister Beni Prasad Verma said the process of NMDC disinvestment has already begun and roadshows were being organised.
Earlier this month, the government appointed leading law firm ALMT Legal, Advocates & Solicitors as legal adviser for selling its 10 per cent stake in the country's largest iron ore miner.
The government has also appointed Citigroup Global Markets India, Goldman Sachs (India) Securities, DSP Merrill Lynch (all Mumbai based), Enam Securities and ICICI Securities (Delhi based) as Merchant Bankers for the stake sale.
The stake sale will take place through "Offer for Sale by promoters through the stock exchanges" (OFS) method.
The Cabinet Committee on Economic Affairs (CCEA) had on October 25 cleared sale of about 39 crore equity of NMDC of face value of Rs 1 each through the OFS route. At present, the government holds 90 per cent stake in the National Mineral Development Corporation (NMDC).
As of March 31, 2012, the paid up equity capital of NMDC stood at Rs 396.47 crore. After disinvestment through the OFS mode, the government holding in the entity will come down to 80 per cent.
NMDC has reported a nearly 15 per cent decline in its net profit at Rs 1,678.62 crore for the quarter ended September 30, 2012, largely due to lower production and fall in sales.