The government will tomorrow begin sale of 1.5% stake in NMDC at a floor price of Rs153.50 apiece, with an option to retain over-subscription of equal quantum.
The two-day offer for sale (OFS) will open for institutional investors on Tuesday and for retail investors on Wednesday. Sale of 1.5% would fetch Rs750 crore to the exchequer, a person familiar with the matter said.
The stake sale will have a green-shoe option to retain over-subscription of a further 1.5%, the person added. Shares of NMDC closed at Rs161.85, up 2.11% on the BSE. The floor price of Rs153.50 is at a discount of 5% over the closing price of Rs161.85.
The government has already raised over Rs52,500 crore in current fiscal through stake sale in public sector units (PSUs), including listing of insurance PSUs and exchange traded fund. It has set an ambitious target of raising Rs72,500 crore for disinvestment in the current fiscal.
Of this, Rs46,500 crore is to be raised through minority stake sale in PSUs and Rs15,000 crore from strategic sale. Another Rs11,000 crore is to come from listing of insurance companies.
Source: Mint