Why is the government planning to sell an additional stake in NMDC?
Answer
Answer
The government is planning to sell 7.49% stake in NMDC and the offer for sale for the divestment will be open to institutional investors on 06 July. Any left-over portion will be offered to retail investors on 07 July. The government proposes to mop up close to Rs.3,621 crore and will be useful in scaling its overall divestment targets of Rs.175,000 crore for the fiscal year 2022.
The open offer will have a base sale offer of 11.72 crore shares representing 4% of the capital at a floor price of Rs.165 per share, which is at a discount to the CMP. However, the government will retain a green-shoe option to sell another 3.49% depending on the demand.