Disinvestment in Manganese ORE (India) Ltd. (MOIL)
The Cabinet Committee on Economic Affairs today approved the disinvestment of 10% of total paid up equity of MOIL out of its holding through Initial Public Offering (IPO). The State Governments of Maharashtra and Madhya Pradesh have also decided to divest 5% each of total paid up equity in MOIL out of their shareholding along with the Government of India. This will lead to MOIL listing its shares in the Stock Exchanges. A portion of the shares to be offered for sale through IPO shall be reserved for the employees of the Company.
The CCEA has also approved to allow 5% price discount to the employees of the company under employees reservation quota to encourage their becoming stakeholders in the company. The CCEA has further decided to allow this 5% price discount to retail investors as well as to encourage the development of people-ownership.
At present, the Central Government holds 81.57% of the equity of Manganese Ore India Ltd. a Miniratna Central Public Sector Enterprise. The balance is held by the State Governments of Maharashtra and Madhya Pradesh to the extent of 9.62% and 8.81% respectively. MOIL is engaged in production of manganese ore, which is the raw material for manufacturing of alloys, an essential input for steel making and dioxide ore for manufacturing dry batteries.
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