The mining major NMDC would see an erosion of 8.38% of its stakes as the government has made up its mind to sell stakes in the firm in a bid to raise Rs 14,100 crore from the stake sales under its disinvestment plan. The government, holding about 98.38 percent in the largest miner in the country, is expected to come up with a follow-on public offer by the end of this financial year.
The miner, in a filing before Bombay Stock Exchange, said, “The government has expressed its desire to complete the process of disinvestment of 8.38 percent in NMDC, out of the government’s shareholding through a public offer in the domestic market during the current fiscal.”
The proceeds from the disinvestment process would help the government facing huge fiscal deficit and lack of funds to carry on various social service schemes. Government has proposed four FPOs this year while the UPA government has already made divestment in two PSUs—NHPC and Oil India.
Further, disinvestment in the power sector PSUs– NTPC, REC, and SJVNL is expected to get completed in the ongoing fiscal, said the persons concerned with the development.