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The Centre will sell 1.5 per cent of its equity stake in state-run NMDC on Tuesday.
“The government proposes to sell up to 4.74 crore (1.5 per cent) equity shares of the face value of ₹1 each in NMDC,” said the company in a filing to the stock exchange.
The disinvestment, to be carried out through the offer for sale route, is expected to raise about ₹750 crore.
The stake sale will have a green-shoe option to retain over-subscription of a further 1.5 per cent. This will mean that the Centre could divest 3 per cent of its stake in NMDC and earn close to ₹1,500 crore.
While institutional investors will get a chance to bid on Tuesday, the OFS will open for retail investors on Wednesday. The floor price has been set at ₹153.50 a piece, which amounts to a discount of 5 per cent on the closing price of ₹161.85 on Monday on the BSE.
The Centre currently owns 74.94 per cent in the country’s largest iron ore producer.
The government has already raised ₹53,833.05 crore through disinvestment in public sector firms this fiscal by listing public sector insurers and exchange traded fund.
For the current fiscal year, it has set a target of raising ₹72,500 crore via disinvestment, which includes ₹46,500 crore through minority stake sales, ₹15,000 crore from strategic sale and another ₹11,000 crore from listing of insurance firms.
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