The Government would sale 10 per cent stake in NMDC Ltd on Wednesday. An Empowered group of Ministers (eGoM) on Monday approved the stake sell in the public sector iron ore, said Finance Minister P Chidambaram.
The price band is fixed at Rs 145-150 per share, according to PTI.
On Monday, NMDC stock closed at Rs 154.75 a share on the Bombay Stock Exchange, down 2.49 per cent from its previous trading session. During the day’s trade, the scrip touched highest Rs 157.95 and fall to Rs 150.15.
According to market watchers, NMDC stock has underperformed. It saw a dip of 12.95 per cent in the past one month compared to 2.76 per cent northward rally of the benchmark index, Sensex.
At present, Government is the majority stake holder with 90 per cent stake in the miner. Another 10 per cent stake is with other investors that include 8.42 per cent domestic institutional investors, 0.92 per cent with retail investors and remaining 0.66 per cent with foreign institutional investors.
The share sale in NMDC would be second divestment in the current financial year after Hindustan Copper Ltd. The Government sold 5.58 per cent in Hindustan Copper to mop up Rs 807 crore.
On October 25, the Cabinet Committee on Economic Affairs had taken the decision to offload Government’s equity in NMDC through offer for sale route, popularly known as auction.