Govt invites bids from bankers for stake sale in NMDC, Nalco

Govt invites bids from bankers for stake sale in NMDC, Nalco

New Delhi: The department of disinvestment has invited bids from merchant bankers for further divesting government’s stake in two Navratnas - NMDC and Nalco.

The government has decided to disinvest 10% paid up equity of NMDC through Offer for Sale (OFS) of shares through the stock exchanges, department of disinvestment said in an advertisement. The government currently holds 90% stake in the country’s top iron ore producer after it offloaded its 8.38% holding of then 98.38% stake in the company in March 2010.

For NMDC stake sale, the last date for submitting expressions of interest (EoI) by merchant bankers is 28 September. The role of the merchant bankers would be to assist and advise the government on modalities of the offer for sale and also conduct market surveys for pricing the offer.

Besides, the department has invited EoIs from merchant bankers, either singly or as a consortium, for stake sale in National Aluminium Company Limited (Nalco) before 27 September.

The government, which has a shareholding of 87.15% in Nalco, wants to divest 12.15% paid up equity share capital in the company through OFS. In a bid to accelerate the process of disinvestment, finance minister P Chidambaram had given directions to officials to expedite the process so that state-owned companies could hit stock markets in time. The government has proposed to raise 30,000 crore from disinvestment in the current fiscal. However, it has failed to come out with any public offering in first five months of 2012-13.

Last fiscal, due to volatile market conditions, the government had to postpone the sell off process in some PSUs. It raised only 14,000 crore in 2011-12 against a target of 40,000 crore.

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