ADVERTISEMENT

Government Looks To Raise Rs 750 Crore From NMDC Stake Sale

Government plans to sell 1.5 percent stake in the country’s largest mining company.

Iron ore is released onto a freighter. (Photographer: Dado Galdieri/Bloomberg)
Iron ore is released onto a freighter. (Photographer: Dado Galdieri/Bloomberg)

The government will sell a 1.5 percent stake in the National Mineral Development Corporation Ltd., the country's largest mining company, through an offer for sale.

The sale could fetch around Rs 750 crore to the exchequer, Bloomberg reported citing a government official it did not identify.

The two-day offer for sale will start tomorrow, and has a greenshoe option of 1.5 percent, which allows the government to retain that quantum in case of oversubscription, the company said in a stock exchange filing.

The floor price for the sale has been set at Rs 153.50 a piece. Retail investors can bid at a 5 percent discount to the cut-off price, as per the filing.

The offer is open to bidding for non-retail investors from tomorrow and will open on Dec. 10 for retail investors.

The government has already raised over Rs 52,500 crore in current fiscal through stake sale in public sector units, including listing of insurance PSUs and exchange traded fund. It has set an ambitious target of raising Rs 72,500 crore from disinvestment in the current fiscal.

Of this, Rs 46,500 crore is to be raised through minority stake sale in PSUs and Rs 15,000 crore from strategic sales. Another Rs 11,000 crore is to come from listing of insurance companies.