Govt to offload 8.4 pc this fiscal: NMDC
The Government will sell 8.38 per cent of its stake in the mining major NMDC in the current fiscal itself, generating around Rs 14,100 crore from the process.
Mumbai: The Government will sell 8.38 per cent of its stake in the mining major NMDC in the current fiscal itself, generating around Rs 14,100 crore from the process.
As part of its divestment programme to have a minimum 10 per cent public holding in profitable PSUs, the Government is proposing to offload 8.38 per cent of its stake in NMDC through a follow-on public offer before the end of the fiscal.
"The Government has expressed its despite to complete the process of disinvestment of 8.38 per cent in NMDC, out of the Government`s shareholding through further a public offer in the domestic market during the current fiscal," NMDC said in a filing to the Bombay Stock Exchange on Tuesday.
Based on the current market valuation of NMDC, the stake sell would fetch the government a hefty Rs 14,100 crore. NMDC shares closed at Rs 425.75, up 2.80 per cent on the BSE on Tuesday.
The Government currently holds about 98.38 per cent in the largest miner, and the rest are with the public.
The amount raised would be used for funding social sector schemes, since the Government is running a high fiscal deficit, pegged at 6.8 per cent of GDP for the current fiscal, as it pumped more money into the economy through a number of stimulus packages following the global downturn.
The NMDC public issue would be among the four FPOs planned by the Government for this fiscal. Public issues of power sector PSUs-- NTPC, REC and SJVNL are also likely this fiscal.
The UPA Government in its second term has already made divestment in two PSUs--NHPC and Oil India--this fiscal.