New Delhi: Encouraged by the response to its stake sale in Hindustan Copper, the government on Friday said disinvestment of its 10 percent shares in NMDC is likely to take place in first half of the next month. (Agencies)
"NMDC disinvestment should be in the first fortnight of December... They have estimated about Rs 7,000 crore. Let's see," Disinvestment Secretary M Haleem Khan told reporters.
Last month, the government had approved 10 percent stake sale in the country's largest iron-ore miner NMDC that could fetch the exchequer over Rs 7,000 crore.
The disinvestment, like in the case of Hindustan Copper, will be through Offer for Sale (OFS) route, popularly known as auction method.
The Government will offer about 39 crore equity in NMDC of face value of Rs 1 each to investors. At present, the government holds 90 percent stake in the National Mineral
Development Corporation (NMDC).
As of March 31, 2012, the paid up equity capital of NMDC was Rs 396.47 crore. NMDC has reported a nearly 15 percent decline in net profit at Rs 1,678.62 crore for the quarter ended September 30, 2012, largely due to lower production and fall in sales.
Shares of NMDC closed at Rs 166.50 apiece, down 1.89 percent on the BSE on Friday.
Kick-starting the disinvestment process of this year, the government on Friday sold 5.58 percent stake in Hindustan Copper for about Rs 808 crore at an average price of Rs 156.56 apiece, with bulk of the bids coming from LIC and PSU banks.
Encouraged by the response to the first stake sale in the current financial year, Finance Minister P Chidambaram expressed the hope that government would able to garner the targeted Rs 30,000 crore in 2012-13 through disinvestment.
New Delhi: Encouraged by the response to its stake sale in Hindustan Copper, the government on Friday said disinvestment of its 10 percent shares in NMDC is likely to take place in first half of the next month.