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| Steel Ministry okays NMDC divestment; to fetch govt Rs 12,000 cr |
| Press Trust of India / New Delhi Aug 04, 2009, 14:20 IST |
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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 1,46,297 crore.
After the disinvestment, the government equity in the 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.
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