This Article is From Jan 13, 2015

FinMin to Finalise Merchant Banker for MOIL Issue on January 15

New Delhi: Finance Ministry is likely to finalise on Thursday a merchant banker and a legal adviser for sale of government's 10 per cent equity in MOIL which may fetch Rs 500 crore to the exchequer.

Three merchant bankers -- SBI Capital Markets, IDBI Capital Market Services, and Edelweiss Securities -- would be making presentations before officials on Thursday.

Four law companies, Luthra & Luthra Law Offices, Crawford Bayley & Co, Khaitan & Co, and AZB & Partners, too would make presentations on the same day, sources said.

The names of selected merchant banker and legal adviser are likely to be finalised on the same day after opening the financial bids, they said.

The government plans to sell 10 per cent stake or 16.80 crore shares in the company through an Offer for Sale (OFS).

At the current market price of about Rs 308 a share, MOIL disinvestment could fetch over Rs 500 crore to the government.

The disinvestment may happen in the current fiscal ending March, as government races against time to meet the stake sale target of Rs 43,425 crore.

So far it has raised Rs 1,700 crore through SAIL disinvestment this fiscal.

Government holds 71.57 per cent in the Miniratna PSU which is the largest producer of high grade manganese ore -- an essential input for steel making.

The eligible employees of MOIL would get shares at a discount of 5 per cent to the issue price of the OFS and up to a maximum of 10 per cent of the total shares would be reserved for them. The employees will be eligible to apply for shares up to Rs 2 lakh, as per a notice of Department of Disinvestment.