Cabinet panel approves sale of 10 per cent equity in NMDC
25 Oct 2012
The Cabinet Committee on Economic Affairs (CCEA) today approved the divestment of 10 per cent paid-up equity capital of National Mineral Development Corporation (NMDC).
NMDC will offer for sale a total of 39,64,71,600 equity shares, each of a value of Re1, through stock exchanges as per SEBI rules and regulations, the CCEA said in a release.
NMDC, a listed 'Navratna' central public sector undertaking, had a total paid-up equity capital of Rs396.47 crore as of 31 March 2012.
The government of India holds 90 per cent of the paid-up capital in the company.
The CCEA also authorised the empowered group of ministers looking into the divestment of stake in government-owned companies, to change the method of disinvestment from the OFS method, if it is required subsequently due to market conditions or due to changes in SEBI rules and regulations.
The panel of ministers will also decide on the floor price, the number of tranches, the basis of allotment and the number of shares to be allotted in each of the tranches. It may also accept or cancel the offer, if there is not enough demand at or above the floor price.
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