In a fillip for its efforts to cap the widening fiscal deficit, government has raised $1.1 billion by selling a stake in state miner NMDC. The government aims to raise $5.5 billion in the current fiscal year ending next March by divesting stakes in state companies. The share sale was the largest by the government since a $2.5 billion auction of stock in state explorer Oil and Natural Gas Corporation at the end of the previous financial year.
In NMDC sale, the government offered 396.47 million shares, or 10 percent of its stake, at a floor price of Rs 147, an 8 percent discount to December 12 close. However, by the close, the offer had attracted bids for 686.92 million shares at an indicative weighted average price of Rs 149.15, exchange data showed.
Further, the government, which is expected to ramp up its divestment programme in the months ahead, has approved share sales in top power utility NTPC, Oil India, state trading firm MMTC and power equipment maker Bharat Heavy Electrical (BHEL).
NMDC, India's top ore miner, accounts for about 15 per cent of iron ore mined in the country, with annual production capacity of 30 million tonnes.
