Govt may sell NMDC stake this week

The government is likely to sell its 10 per cent equity this week in iron ore miner NMDC, which could fetch the exchequer nearly Rs 6,300 crore at the current market price.

“The stake sale in NMDC would happen either on Thursday or Friday. The date and price will be finalised by the empowered group of ministers, which is expected to meet on Tuesday,” a senior government official said.

The Cabinet Committee on Economic Affairs on October 25 approved disinvestment of 10 per cent government shares in NMDC, amounting to 39,64,71,600 shares of face value of Rs 1 each to investors through “Offer for the Sale” (OFS) route, also known as auction route.

At Friday’s closing price of Rs 158.70 apiece of shares NMDC at the BSE, 10 per cent share sale would fetch a little over Rs 6,292 crore for the government, if the offer is fully subscribed.

“Unlike Hindustan Copper issue, the base price for NMDC share sale will not see steep discount and will be maximum in the range of 10 to 15 per cent,” the official said. At 10 to 15 per cent discounted base price, the government can collect in the range of Rs 5,000-5,500 crore.

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