Govt shortlists Citi, Kotak among 6 to advice on NMDC selloff: ET

Govt shortlists Citi, Kotak among 6 to advice on NMDC selloff: ET


Six leading bankers, including Citigroup and Kotak Mahindra, are learnt to have been shortlisted for managing the
estimated Rs 14,000-crore divestment programme of state-owned iron ore producer NMDC. Last month as many as 17
investment bankers had made presentations to the inter-ministerial group (IMG), set up under the Finance Ministry, for
advising the government on the follow-on-public offer (FPO) of the country's largest miner.

"The IMG shortlisted six bankers, which include Citigroup, Kotak Mahindra, RBS Equities, UBS Securities, Morgan
Stanley and Edelweiss Capital to advice on the FPO," one of the investment bankers said on Sunday.

The IMG also shortlisted the Mumbai-based law firm Crawford Bayley to advice on the share sale from the seven firms
which presented their cases before it in December, a Finance Ministry official said, who also confirmed the
appointment of the six bankers as book runners-cum-lead managers of the FPO.

The development could not be confirmed independently with the shortlisted bankers or the law firms.

ICICI Securities, Citigroup, Morgan Stanley, SBI Caps, JM Financial, Kotak Mahindra, IDFC-SSKI, Enam Securities,
DSP Merril Lynch, Deutsche Bank, Nomura Financial, IDBI Capital, Edelweiss Capital, Axis Bank, Karvy Investors,
RBS Equities, and UBS Securities comprised the 17 banks which made presentations to the IMG.

Amarchand Mangaldas, Luthra & Luthra, S&R Associates, Fox Mandal, Khaitan & Co, Dua Associates and Crawford
Bayley were in the fray to offer legal advice to the government on the additional stake sale in NMDC.

The Government is proposing to offload 8.38 per cent of its stake in the NMDC through an FPO, which is expected to
fetch Rs 14,000 crore to the exchequer, depending on share price on NMDC and also of the issue price.
NMDC closed at Rs 419.05, down 0.05 per cent on the BSE on January 8.

At present, the Government holds about 98.38 per cent in the Navratna mineral company, as the rest are already with
the public. The Cabinet last month cleared the proposal to sell government's additional equity in the company and is
working to complete the process by the end of this fiscal.