Indian state-owned iron ore miner NMDC Limited will raise funds through the sale of a minority equity stake in its upcoming three million mt per year steel mill, a company official said on Thursday, July 13.
The official said that NMDC, currently the sole promoter of the steel mill under construction at Nagarmar in Chhattisgarh state, would offer a minority equity stake in the project to a domestic or international strategic investor to raise funds. The steel mill is expected to be commissioned later during the current fiscal year.
The company has already appointed a consultant to do a valuation of the project and based on this the size of the equity to be offered and the amount of funds targeted would be established by NMDC Limited, the official said. The Indian government has already given its approval to NMDC Limited for such a strategic sale of equity in the steel project, he added.