New Delhi Taking the disinvestment process in iron ore producer NMDC forward, the government on Friday invited applications for appointment of lead managers to advise it on the timing of the public issue, among other aspects.
“The government will select and appoint up to six merchant bankers with requisite experience in public offerings, who together will form a team and be called book running lead-managers,” the Disinvestment Department said while inviting proposals.
Interested parties have to submit their proposal by 18 December.
The bidders interested for the NMDC follow-on public offer (FPO), which will see the government selling an additional 8.38% of its stake in the Navratna firm, should have handled domestic or international equity issues to the tune of Rs500 crore or more during the past three years, the proposal said.
Last week, the government had given its approval for the additional stake sale in NMDC. At present, the government holds about 98.38% in the largest iron ore mining firm. About 1.62% holding has already been made public.
The move may fetch the exchequer about Rs14,000 crore based on the firm’s share price. Shares of the PSU on Friday closed at Rs417.95, down 0.69% from the previous close on the Bombay Stock Exchange.