NMDC likely to file for FPO by Jan 25

The country's largest iron ore producer National Mineral Development Corporation (NMDC) is planning to file draft prospectus with the market regulator Sebi within a fortnight for its estimated Rs 14,000-crore disinvestment programme.

"NMDC is targeting to file the draft red herring prospectus for the follow-on public offer by January 25. It is in line with the target to complete the divestment process by March 31," a person in the know of the development said.

The government has already appointed book runners- cum-lead managers comprising Citigroup, Kotak Mahindra, RBS Equities, UBS Securities, Morgan Stanley and Edelweiss Capital to advice on the FPO.

The inter-ministerial group also shortlisted the Mumbai-based law firm Crawford Bayley to advice on the share sale, a Finance Ministry official had said.

The government is proposing to offload 8.38 per cent of its stake in the NMDC through an FPO, which is expected to fetch Rs 14,000 crore to the exchequer, depending on the share price and also of the issue price. The NMDC counter closed at Rs 434, up 3.57 per cent on the BSE.

Currently, the government holds about 98.38 per cent in the Navratna mineral company, as the rest are already with the public.