Centre to sell ₹3,621-crore stake in NMDC

The Centre proposes to sell more than 11.72 crore shares, representing 4% of the equity, in mining major NMDC at a floor price of ₹165 each through an Offer for Sale to non-retail investors that opens on Tuesday.

Under the oversubscription or the green-shoe option, it intends to sell an additional 10.22 crore shares corresponding to 3.49% equity to retail investors as well as those non-retail investors who choose to carry forward their unallotted bid.

From the proposed sale of 7.49% equity, to both institutional and non-institutional investors, the government stands to mobilise over ₹3,621 crore. The Centre holds 68.29% stake in the company. On Monday, NMDC shares closed 4.13% lower at ₹175.30 each. The intra day high was ₹184.

The move to offload stake partially in the country’s largest iron ore miner comes amid an enhanced need to raise resources through divestment by the pandemic’s impact on the economy and the additional spending it has necessitated. The government is pursuing a ₹1.75 lakh crore target from divestment and strategic sale this fiscal, which Chief Economic Advisor Krishnamurthy Subramanian recently said would be achieved, with a chunk coming from proposed IPO of insurance major LIC and privatisation of Bharat Petroleum Corporation (BPCL).

A communication from the Union Ministry of Steel on the proposed sale of equity in NMDC said the President of India, acting through and represented by the Ministry, is the promoter and proposes to sell upto 11,72,24,234 equity shares of the company, (representing 4% equity) on July 6 to non-retail investors. On July 7, there will be an option to additionally sell 10,22,78,144 shares (representing 3.49% the equity share) to retail investors and non-retail investors who choose to carry forward their un-allotted bids.

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Printable version | Sep 28, 2021 2:21:15 PM |

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