India sets up to $1.1 bln NMDC stake sale for Wednesday- sources

Last Updated: Mon, Dec 10, 2012 13:20 hrs

MUMBAI, Dec 10 (Reuters) - An Indian panel of ministers plans a share sale in state miner NMDC Ltd for Wednesday, three sources with direct knowledge of the matter said, in a deal that could raise up to $1.1 billion for the deficit-strapped governnment

The government is likely to announce a floor price on Tuesday for the sale through a share auction, which is likely to be in the range of 145 rupees to 150 rupees, two of the sources said.

The government is selling a 10 percent stake in India's largest iron-ore miner. At the top end, the share sale will garner about $1.1 billion.

NMDC shares closed 2.3 percent lower at 154.75 rupees, ahead of the decision.

New Delhi has so far raised only $148 million by selling shares in state companies out of its target of $5.5 billion for the fiscal year that ends in March. Weak market conditions, corruption scandals and wrangling among government officials have delayed several planned offerings. (Reporting by Prashant Mehra and Sumeet Chatterjee; Editing by Tony Munroe)

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