New Delhi, Nov 04: The government today invited initial bids for appointment of coordinator-cum-advisor for disinvestment of its residual stake of 26.25 per cent in CMC Ltd through offer for sale in the domestic market. Merchant bankers with specific expertise in capital market offerings would be required to submit their expression of interest (EoI) by November 17.
The coordinator cum advisor would be required to advise on timings and the modalities of the capital market offer, to ensure best returns to the government.
"They would also be required to advise on all aspects of the offering including assisting the government in identification and selection of lawyers, accountants and other intermediaries and co-ordinate their work under the guidance of the government, complete the due diligence, draft offering documents and red herring prospectus for the issue," Disinvestment Ministry said in its website here.
The responsibility of coordinator cum advisor would also include pre-market survey, road shows, book building and generation of interest amongst prospective investors, it said.
"Since it is desirable for government to have two co-ordinators, having adequate experience in similar offerings, government will select two parties who together form a team and will be called joint co-ordinator cum advisor," it added.
CMC Ltd is an it company in which Tata Sons acquired 51 per cent holding from government in 2001.
At present the government's holding in the company stands at 26.25 per cent.
Bureau Report