Govt to sell 8.4% in NMDC via FPO NMDC

NMDC Ltd. said that the Government will sell a 8.38% stake in the public sector mining and minerals company through a follow on public offer (FPO) in the current financial year. The stake sale is likely to be completed by March 31. “The Government of India has desired to complete the process of disinvestment of 8.38% of paid-up equity in NMDC Ltd., out of the Government’s shareholding through further public offer in the domestic market during the current financial year,” NMDC said in a filing to the exchanges. As of September 31, 2009, the Government held about 98.38% in NMDC, and the rest were with the public. Based on NMDC's current market value, the Government could raise about US$3bn through the FPO. Since August, the government has raised US$1.8bn by selling shares in NHPC and Oil India. Morgan Stanley, Citigroup, RBS, UBS and Kotak Mahindra Capital have been shortlisted as merchant bankers for the FPO.