Putting aside the Rashtriya Ispat Nigam Ltd (RINL) IPO deferment, the Centre is all set to kick start the final process for sell-off in mining major NMDC next month. NMDC is one of the 11 companies slated for divestment this year.
“The disinvestment process for NMDC is to start with road shows early next month. Accordingly, we will decide about the issue date, but most likely it will be around end November,” a senior Union Government official told Business Line. The Centre aims to divest 10 per cent in the Hyderabad-based company.
He also pointed out NMDC was already listed. Its current market price of Rs 190.65 (closing price on Thursday on the BSE) is much above the book value of Rs 61.56. So there will not be problem such as price discovery in this case and the Centre can easily think of a better premium, the official added.
On Tuesday, the Finance Ministry had deferred RINL’s IPO (initial public offer) as there were differences over issue pricing. The advisors insisted on a price band below Rs 20 a share against the book value of Rs 22.50/ share. The administrative ministry of RINL, the Steel Ministry, refused to accept this valuation. This led to deferment of issue which was scheduled to open on October 16. This is the third deferment of RINL’s issue.
The Department of Disinvestment has already initiated process for appointing merchant bankers, selling brokers and legal advisors for offloading shares in NMDC. The Government plans to mobilise Rs 30,000 crore though disinvestment in the current year.