President divests 2.63% stake in NMDC

The President of India, acting through the Union Steel Ministry, has sold 8,05,82,119 equity shares of NMDC Ltd (the target company), amounting to 2.63 per cent stake, to an asset management company (AMC).

Following the move, the shares held by the President have now come down from 72.28 per cent to 69.65 per cent. These divested shares have a face value of ₹306.18 crore.

This was conveyed to the stock exchanges as required under Regulation 29(2) of the SEBI Takeover Regulations by Rasika Dubey, Additional Secretary, Union Steel Ministry.

The sale relates to the setting up of the central public sector enterprise exchange traded fund (CPSE ETF), comprising equity shares of CPSEs. The CPSE ETF mutual fund scheme was launched in March 2014.

The President of India, represented through different departments and ministries, had sold the shares at a discounted rate to the scheme, and the scheme had, in turn, created and allotted the units to the unit holders.

The Department of Investment and Public Asset Management (DIPAM), along with Nippon Life India Asset Management Limited (formerly Reliance Nippon Life Asset Management Ltd) as the AMC, has come out with the sixth Further Fund Offer (FFO 6) of the scheme, which has been offered to the public for subscription in accordance with the SEBI (Mutual Funds) Regulations, 1996, and other applicable laws and regulations.