Govt unlikely to take auction route for NMDC follow-on offer

The government is likely to sell its 330 million shares in mining major NMDC next month through a price band of Rs 415-430 a share and dump the auction route adopted in the case of two power PSUs, NTPC and REC.

A decision on the mode of disinvestment that is likely to commence from March 10, and also the price band is likely to be taken in a day or two, NMDC Chairman Rana Som told PTI but declined to divulge the details, saying these decisions are with the government.

At the prevailing market price of around Rs 465 a share, the issue could attract around Rs 15,500 crore but the price band could be Rs 415-430 as part of efforts to attract more investors, sources in the know said. Though Som refused to answer any query on what route he would prefer and if the NTPC route of auction could enthuse NMDC, some officials said “book building route should be a preferred option for the government to really reach the retail investors”.