The Government of India has identified three public sector undertaking (PSU) companies for disinvestment. It will divest stake in Kudremukh Iron Ore, Manganese Ore and NMDC. Kudremukh is a listed entity with 1% market float, Manganese Ore is an unlisted company owned by the government of India, Maharashtra and Madhya Pradesh state governemnts; NMDC is listed with 1.62% market float.

It is believed that between 9% and 20% of Kudremukh may be divested, which could raise between Rs 771 crore and Rs 1,713 crore, while 10% of Manganese Ore may be sold via offer for sale — it may fetch Rs 108 crore. NMDC may see a divestment of 8.38%–20% and that may fetch between Rs 10,351–Rs 24,704 crore.

The Finance Secretary held a meeting earlier this week to discuss the issue. CNBC-TV18 has learnt that five to 10 companies will be divested this fiscal and that companies with less than 10% market float will be the main candidates for disinvestment.

source: MC