“We would seek the Cabinet approval in the next two-three weeks. The stake sale is expected in the month of December,” a senior finance ministry official told PTI.
The official said, the Centre will offload 10 per cent of its stake in MOIL, while Maharashtra and Madhya Pradesh would dilute 5 per cent each of their stakes. Earlier, only the Centre was considering selling 10 per cent stake in the company.
The government has already invited bids from merchant bankers to manage the stake sale in the Mini-ratna miner MOIL. “We have to appoint up to three merchant bankers, the bids for which have been invited,” the official said.
The government holds 81.57 per cent in the mini-ratna entity, while Maharashtra and Madhya Pradesh hold 9.62 per cent and 8.81 per cent stake, respectively.
MOIL, which operates 10 mines, had a net profit of Rs 240 crore in the financial year 2009-10.
Published 18 July 2010, 16:47 IST