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Govt fixes NMDC price band at Rs 145-150

11 Dec 2012 Evaluate

The government fixed the issue price band for the upcoming 10% stake sale in country’s largest iron ore miner, National Mineral Development Corporation (NMDC) at Rs 145-150 crore that could garner a maximum of Rs 5,947 crore to the exchequer as part of its Rs 30,000 crore disinvestment plan for the current fiscal. The government, which has 90 per cent holding in the iron ore producer NMDC, plans to divest 39.65 crore shares, amounting to 10 per cent of its equity through offer for sale on Wednesday, i.e., December 12.

The Cabinet Committee on Economic Affairs (CCEA) had on October 25 approved disinvestment of 10 per cent government shares in NMDC. This issue will be the second disinvestment by the government in this fiscal, with the first one being Hindustan Copper.

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