New Delhi, Sept. 9: The government today approved Manganese Ore Indias divestment plans.
The Centre will hive off 10 per cent of its equity, while the Maharashtra and Madhya Pradesh governments each want to offload 5 per cent.
The initial public offering of the Nagpur-based firm is likely to hit the market by the end of this fiscal.
Analysts expect the IPO to raise about Rs 1,500 crore and help the government to meet the Rs 40,000-crore divestment target for the fiscal.
This (initial public offering) will lead to Manganese Ore India listing its shares on the bourses. Following the divestment, the governments share in the company will come down to 71.57 per cent, home minister P. Chidambaram said after the meeting of the Cabinet Committee on Economic Affairs.
After the selloff, the Maharashtra governments holding will come down to 4.62 per cent, while the Madhya Pradesh government will have a 3.81 per cent share in the company. Employees and retail investors will get shares at a 5 per cent discount to the offer value.
On the timing of the IPO, Chidambaram said, It will depend on the market conditions. The empowered group of ministers will take a final decision. Pricing will be decided by the government later The book value of the company was Rs 99.84 a share as on March 31.
JPMorgan Chase, Edelweiss Capital and IDBI Capital Market Services will manage the offer.
Punjab & Sind Bank, the only unlisted state-owned lender, is aiming to hit the capital market with an estimated Rs 600-crore initial public offering by the end of November or in early December.