Nov. 10 (Bloomberg) -- NMDC Ltd., India’s largest iron-ore producer, climbed the most in six months in Mumbai trading after the steel ministry said it will initiate next month a plan to sell a stake in the company.

The shares rose 20 percent to 432.30 rupees, the most since April 13, at the close of trading. The Bombay Stock Exchange’s benchmark Sensitive Index fell 0.4 percent.

The government, which owns 98.38 percent of NMDC, aims to sell an 8.38 percent stake as part of a plan to cut holdings in its profitable companies to 90 percent. Prime Minister Manmohan Singh’s administration may raise 256 billion rupees ($5.5 billion) from its divestment program, according to Standard Chartered Bank.

The stake sale in Hyderabad-based NMDC will fetch as much as 130 billion rupees at current prices, the steel ministry said in its statement yesterday.

To contact the reporter on this story: Debarati Roy in Mumbai at droy5@bloomberg.net

Last Updated: November 10, 2009 05:15 EST