Cabinet approves Manganese Ore IPO

Cabinet approves Manganese Ore IPO

New Delhi: The Cabinet has approved stake sale in state-run Manganese Ore, home minister P. Chidambaram said on Thursday.

The timing of the initial public offering (IPO) would depend on market conditions and the advice given by the lead managers, Chidambaram told reporters.

The central government , which currently holds 81.57% stake in the firm, will sell 10%, while the Maharashtra and Madhya Pradesh governments would sell 5% each, the government said in a statement.

The company, a leading producer of manganese ore, had hired JP Morgan, Edelweiss and IDBI Capital to manage the share sale, three sources with knowledge of the situation had told Reuters on 31 August.

The sale will be part of a government plan to sell stakes in about 60 state-run firms over the next few years, as India moves to cut a stubbornly high fiscal deficit and garner funds to spend on schemes for the poor.

The government expects to raise about $8.6 billion in the current fiscal year through such sales.