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Centre plans to divest 10% stake in NMDC this fiscal

Rajalakshmi S | | Updated on: Apr 22, 2016
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Bid submission deadline for offer worth over ₹4,000 cr is May 16

The government plans to sell a 10 per cent stake in state-run NMDC this fiscal year. The sale could fetch the exchequer over ₹4,000 crore.

The Department of Investment and Public Asset Management (DIPAM) on Thursday kicked off the disinvestment process for 2016-17 and invited applications from merchant bankers for the stake sale.

“The government will select and appoint up to four merchant banker(s), who together will form a team and will be called book running lead manager(s),” it said.

The disinvestment will take place through the offer-for-sale mechanism, it further said, adding that bids should be submitted by May 16.

Five per cent of the offer size will be reserved for NMDC employees, who will also be eligible for a discount of 5 per cent of the discovered price.

The Centre currently holds an 80 per cent stake in NMDC, which is the country’s largest iron ore miner. It last sold a 10 per cent stake in the navratna public sector undertaking (PSU) in December 2012 and raised ₹5,973.27 crore then.

On Friday, NMDC shares closed 2.20 per cent lower, at ₹99.85, on the BSE. At this rate, the Centre will raise about ₹4,500 crore from the stake sale.

The Budget has estimated receipts of ₹36,000 crore through disinvestments this fiscal.

Apart from NMDC, the Centre plans to divest stakes in about a dozen PSUs, including ONGC, Coal India, India Tourism and Development Corporation and Rashtriya Chemicals and Fertilisers.

Published on January 20, 2018

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