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The government has appointed five merchant bankers for selling its 10 per cent stake in the country’s largest iron ore miner NMDC.
“The Department of Disinvestment has appointed merchant bankers to divest 10 per cent paid up equity capital of NMDC Ltd out of its shareholding of 90 per cent,” the mining major said.
The merchant bankers finalised are: Citigroup Global Markets India Pvt Ltd, Mumbai; Goldman Sachs (India) Securities Pvt Ltd, Mumbai; Enam Securities Pvt Ltd, New Delhi; DSP Merrill Lynch Ltd, Mumbai; and ICICI Securities Ltd, New Delhi, it said in a filing to the BSE.
The stake sale will take place through “Offer for Sale by promoters through the stock exchanges” (OFS) method,” NMDC said.
The government last month had approved 10 per cent stake sale in NMDC that could fetch the exchequer over Rs 7,000 crore.
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 (auction) method, the government holding in the Navratna 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.
Shares of NMDC closed at Rs 183.90 apiece, up 0.88 per cent on the BSE today.
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