The steel ministry has approved the sale of 8.38 per cent of government equity in the blue chip company NMDC that could fetch the exchequer around Rs 12,000 crore.
“We have approved the 8.38 per cent disinvestment of government’s stake in NMDC. We will be sending the proposal to the Disinvestment Department in a day or two (for initiating the process of equity sale),” Steel Secretary P K Rastogi said.
The country’s largest iron ore mining company is one of the most valued Indian firms with a market cap of Rs 146,297 crore.
After the disinvestment, the government equity in NMDC will fall by 10 per cent, the minimum that is needed for listing shares of a company on the bourses under the Sebi regulations. Currently, the state-run entity is exempted from this rule.
The government has already offloaded 1.62 per cent of its shareholding in the listed entity.
“With the sale of 8.38 per cent of its stake, the government is estimated to earn Rs 12,000 crore. The amount can vary based on the share price of the company,” he added. The steel ministry has already sent a proposal to the Ministry of Finance for divesting 10 per cent stake in the Nagpur-based Manganese Ore (India) Ltd.
More From This Section
...offers free re-survey of Jharkhand mineral reserves
National Mineral Development Corporation (NMDC) says it is ready to survey, free of cost, the mineral-bearing areas of Jharkhand to recheck the figures.
The quantums vary between sources, said the CMD of NMDC, Rana Som, at a meeting on mining in the state. He mentioned his offer to journalists on the sidelines of the meeting.
Som said Jharkhand had delayed implementing the MoUs signed by domestic and foreign investors for setting up industries in core sectors. He stressed the need for more value addition in raw materials to enable more job opportunities to unemployed youths in the state.