NMDC drops after govt initiates stake sale process

Shares of state-owned NMDC today plunged by over 2 per cent after the government invited bids from merchant bankers for assisting it in the sale of 10 per cent stake in blue-chip NMDC.
The stock settled at Rs 99.85 on BSE, a drop of 2.20 per cent over its previous close.
On NSE, it was down 2.20 per cent to close at Rs 99.90.
Total 23.75 shares were traded on the exchanges today.
Government today invited bids from merchant bankers interested in assisting it in the sale of 10 per cent stake in blue-chip NMDC which could fetch about Rs 3,900 crore to the exchequer.

It will select four merchant bankers for managing the stake sale in India's largest iron ore producer NMDC.

As per the Expression of Interest floated by Department of Investment and Public Asset Management (DIPAM), the last date for submission of bids by merchant bankers is May 16.
At the current market price of Rs 100.20 a piece, sale of 39.64 crore shares through an offer for sale (OFS) would fetch about Rs 3,900 crore to the exchequer.
Government currently holds 80 per cent stake in the PSU, which has a paid up capital of Rs 396.47 crore.
The PSU, which is in the administrative control of the Ministry of Steel, is primarily engaged in the business of iron ore mining but is also expanding its activities towards production of steel and other value added products.