Manganese Ore files IPO draft prospectus with Sebi

State-run Manganese Ore India Ltd today approached the capital market regulator Sebi for its IPO, which will see 20 per cent stake sale, involving equity dilution from the Centre and two state governments.

"The company has filed the draft red herring prospectus (DRHP) with the Securities and Exchange Board of India today," a top government official told PTI on condition of anonymity.

In all, the Nagpur-based public sector miner will see a total disinvestment of 20 per cent--where Centre will offload its 10 per cent stake, while Madhya Pradesh and Maharashtra governments will dilute 5 per cent each.

Though details of DRHP were not available (as it was not uploaded on the Sebi website today), market sources said that the company will be offering 3.36 crore shares of Rs 10 each, in its IPO slated for December.

Earlier this month, the Cabinet Committee on Economic Affairs (CCEA) had cleared the stake sale proposal by the state-run firm.

Post the share-sale, Centre's equity in MOIL will come down to 71.57 per cent, while that of the Maharashtra government will reduce to 4.62 per cent. Madhya Pradesh government will be left with 3.81 per cent share in the company.

At present, the Union government holds 81.57 per cent in the company, Maharashtra 9.62 per cent and Madhya Pradesh 8.81 per cent stake.

Edelweiss Capital, IDBI Capital and JP Morgan are the book running lead manager to the issue, sources said.

Manganese Ore operates 10 mines, six of which are located in Nagpur and Bhandara districts in Maharashtra, and four in Balaghat district of MP. It had a net profit of Rs 240 crore in 2009-10, while its net worth stood at Rs 1,587 crore.

The government aims to raise Rs 40,000 crore through divestment this fiscal. The other disinvestment candidates for FY10 include Coal India, MMTC, and Hindustan Copper, this fiscal.

Last fiscal it had raised Rs 25,000 crore through stake sale in Oil India, NMDC, REC and NTPC.