New Delhi: The government can raise at least Rs26,500 crore from minority stake sales in state-owned NMDC Ltd, Kudremukh Iron Ore Co. Ltd (KIOCL) and Manganese Ore (India) Ltd.
Finance secretary Ashok Chawla, who is also the secretary of the disinvestment department in the finance ministry, has held discussions to consider the modalities of the stake sales in these three companies earlier this week, said people familiar with the development.
No final decision has been taken yet but the people said on condition of anonymity that six public-sector firms listed on stock exchanges, in which the government holds at least 90% stake, are being considered for additional equity offers to the public. These include MMTC Ltd, Engineers India Ltd, Hindustan Copper Ltd and Neyveli Lignite Corp. Ltd.
In the case of NMDC, which is listed with a 1.62% public shareholding, the government is looking at offloading between 8.38% and 20%. If it were to offload 8.38% to meet market regulator Securities Exchange Board of India’s stipulation of a minimum 10% threshold public shareholding in listed public-sector firms, the government would raise Rs10,351 crore based on its closing price of Rs311.55 on 13 July.
However, if the government chooses to offload an additional 18.38%, taking public shareholding to 20%, it can raise around Rs24,704 crore, thus exceeding expectations of Rs10,000-15,000 crore as disinvestment receipts in 2009-10.
Similarly, the government is looking at raising up to Rs1,713 crore by offloading an additional 19% in KIOCL, taking the public float to 20%.