NMDC stake sale at Rs145-150 per share to fetch over Rs5,900 crore

The government has fixed a price band of Rs145-150 per share for a sale of a 10 per cent stake in National Mineral Development Corporation (NMDC), to raise up to Rs5,947 crore (around $1.1 billion), at the upper end of the price band.

The price is at a discount of 3.07-6.3 per cent to the NMDC stock's closing price of Rs154.75 on the BSE today.

The government, which owns 90 per cent of the iron ore miner, will sell a 10 per cent stake, NMDC said in a notice to the stock exchanges.

The government plans to sell 396.5 million shares, amounting to 10 per cent of its equity through offer for sale, on the Stock markets on the lines of last month's sale of stake in Hindustan Copper.

The cabinet committee on economic affairs had on 25 October approved divestment of 10 per cent government shares in NMDC.

The sale, part of the government's divestment programme to raise Rs30,000 crore during the current financial year (April 2012- March 2013), will be the biggest stake sale in a state-run company since the sale of shares worth Rs12,500 crore in Oil and Natural Gas Corp (ONGC) in March.