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| CCEA clears NMDC stake sale: Virbhadra Singh |
| Press Trust of India / New Delhi Dec 09, 2009, 20:12 IST |
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Steel Minister Virbhadra Singh today said that the government has given the nod for divesting an additional 8.38 per cent stake in iron ore producer NMDC, a move which may fetch the exchequer over Rs 13,500 crore.
"The Cabinet Committee on Economic Affairs (CCEA) last week had cleared the government's additional 8.38 per cent stake sale in NMDC," Singh told PTI.
At present, the government holds about 98.38 per cent in the navratna firm. About 1.62 per cent holding has already been made public.
The government's two-phase share sale programme for Steel Authority of India (SAIL) may also get the Cabinet go-ahead by the end of December, he added.
Meanwhile, the inter-ministerial group (IMG) on disinvestment is expected to discuss tomorrow the appointment of investment bankers and advisers for the NMDC disinvestment, thus kicking start the stake sale process in the nation's largest iron ore producer. Top officials from NMDC, including CMD Rana Som, is likely to attend the meeting.
The government is expected to garner over Rs 13,500 crore at through the process at the current market price of NMDC shares, which closed 3.90 per cent up at Rs 422.75 on the BSE today.
"The IMG on disinvestment will meet tomorrow. The NMDC brass have been called for the meeting. The IMG is expected to chalk out the disinvestment process for the company and also talk about appointment of investment bankers, advertising agencies, issue adviser, among others," a top government official said.
Representatives from the disinvestment department and the steel ministry would form part of the IMG.
The government had earlier said it wanted to disinvest up to 10 per cent stake in all the listed PSUs. This is also in consonance with Sebi guidelines which require the government to increase public shareholding in all listed PSUs to the required threshold limit of 10 per cent.
Besides NMDC, the steel ministry has also recommended share sale programmes of two of its PSUs--SAIL and MOIL-- to the disinvestment department. Both the proposals are likely to reach the Cabinet soon.
For steel giant SAIL, the ministry has recommended a two-phased 20 per cent selloff proposal, which will be a mix of 10 per cent sale of government equity and raising of additional shares in the same proportion by the company. The government and SAIL amy mop up about 9,000 crore each from the proposed proceeds going by the current market price. The SAIL counter closed Rs 202.60 or 2.95 per cent down on the BSE today after the last weeks rally.
In the Nagpur-based Manganese Ore India, the steel ministry has proposed offloading 10 per cent equity of the government stake.
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