Cabinet clears 20-% divestment in Manganese Ore India
09 September 2010
The cabinet committee on economic affairs (CCEA) today approved divestment of 20 per cent equity in Manganese Ore India Ltd (MOIL), including 10 per cent of the central government holding in the paid-up equity of the company, through an initial public offer (IPO).
Along with this, the state governments of Maharashtra and Madhya Pradesh will also divest 5 per cent each of the total paid-up equity in MOIL out of their shareholding.
This will lead to MOIL listing its shares in the stock exchanges. A portion of the shares to be offered for sale through IPO will be reserved for the employees of the company.
The IPO proposal approved by the CCEA provides for 5 per cent price discount to the employees of the company under employees' reservation quota to encourage their becoming stakeholders in the company.
The 5-per cent price discount will also be extended to retail investors as well, an official release said today.
The central government holds 81.57 per cent of the equity of Manganese Ore India Ltd, a Miniratna central public sector enterprise. The balance is held by the state governments of Maharashtra and Madhya Pradesh in the proportion of 9.62 per cent and 8.81 per cent, respectively.
MOIL is engaged in the production of manganese ore, which is the raw material for manufacturing of alloys, an essential input for steel making and dioxide ore for manufacturing dry batteries.