Hindustan Times reported that the government on December 10th Monday fixed the price band for the upcoming 10% stake sale in India's largest iron ore miner National Mineral Development Corp at INR 145 to INR 150 that will fetch the exchequer between INR 5,750 crore and INR 5,950 crore.
The disinvestment, which is being done through the auction route would commence on December 12th. The price band is around 3% to 6.3% lower than the current valuation of the company. Shares of the company fell by 2.5% on Monday to settle at INR 154.75.
The stock had underperformed the market over the past one month till last Friday, falling 13% compared with the Sensex's 2.76% rise. The scrip had also underperformed the market in past one quarter, sliding 15.2% as against Sensex's 9.8% rise.
This is the second disinvestment by the government in this fiscal after last month's 5.6% stake sale for about INR 807 crore in Hindustan Copper.
