Govt to divest 1.5% in NMDC on Tuesday at Rs 153.5 per share

The government will tomorrow begin sale of 1.5 per cent stake in NMDC at a floor price of Rs 153.50 apiece, with an option to retain over-subscription of equal quantum.

The two-day offer for sale (OFS) will open for institutional investors tomorrow and for retail investors on Wednesday.

Sale of 1.5 per cent would fetch Rs 7.5 billion to the exchequer, a source said.

The stake sale will have a green-shoe option to retain over-subscription of a further 1.5 per cent, the source added.

Shares of NMDC closed at Rs 161.85, up 2.11 per cent on the BSE.

The floor price of Rs 153.50 is at a discount of 5 per cent over the closing price of Rs 161.85.

The government has already raised over Rs 525 billion in current fiscal through stake sale in PSUs, including listing of insurance PSUs and exchange traded fund.

It has set an ambitious target of raising Rs 725 billion for disinvestment in the current fiscal. Of this, Rs 465 billion is to be raised through minority stake sale in PSUs and Rs 150 billion from strategic sale. Another Rs 110 billion is to come from listing of insurance companies.