CMC moves FIPB for divestment of Centre's residual stake

The Tata group-promoted CMC Ltd has approached the Foreign Investment Promotion Board (FIPB) with the proposal to disinvest the government's residual 26.25 per cent holding.

The FIPB's nod is required since the IPO will change the capital structure of the company with possible infusion of foreign investment.

According to government sources, the company has sought government permission to allow participation of foreign insitutional investors and other overseas investors in the impending public offer expected around April this year.

This move follows the government's decision in early 2003 to divest its residual stake in public sector companies through a public offer.

The proposal got the cabinet's nod recently. The government plans to divest its entire 26.25 per cent equity in CMC Ltd through the offer.

Tata Sons acquired 51 per cent holding from the government in 2001 as a part of the disinvestment process for Rs 152 crore. The paid-up capital of the company is Rs 15.15 crore as on 31st March, 2003.

The company's share is currently hovering around Rs 625 on The Stock Exchange, Mumbai (BSE).