To push through the 10 per cent stake sale of MOIL in the current fiscal year, the government has started the process of appointing merchant bankers for the disinvestment which could fetch around Rs 500 crore to the exchequer.

The government will sell 16.80 crore shares, or a 10 per cent stake, in the company through an offer for sale (OFS) and will appoint two merchant bankers for managing the stake sale, as per a notice by the Department of Disinvestment (DoD).

At the current market price of Rs 295.15 a share, MOIL stake sale could fetch about Rs 500 crore to the exchequer.

The government has identified MOIL as a candidate for disinvestment in the current fiscal that ends in March 2015, as it 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's disinvestment this fiscal year.

Government holds a 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, the notice added.

The merchant bankers willing to manage the MOIL stake sale can submit their bids by January 9.

The other companies which are on block for disinvestment include NHPC, Power Finance Corp, Rural Electrification Corp, SJVNL and Container Corp.

• [Editor:Sophie]