July 29 (Bloomberg) -- Edelweiss Capital Ltd., IDBI Capital Market Services Ltd. and JPMorgan Chase & Co. are likely to manage Manganese Ore (India) Ltd.’s initial public offering, according to two people with direct knowledge of the matter.
The sale may raise about 15 billion rupees ($322 million), the people said, declining to be named before an official announcement. The lowest fees bid for managing the sale was 0.000001 percent, they said. Banks shortlisted for state share sales need to match the lowest fee bid to win the mandate.
Goldman Sachs Group Inc., UBS AG and Deutsche Bank AG were among 10 banks competing to manage the IPO, according to the disinvestment department. Kotak Mahindra Capital Co., Enam Securities Pvt., Avendus Capital Pvt. and SBI Capital Markets Ltd. had also bid.
The central government will divest a 10 percent stake in Manganese Ore and the state governments of Madhya Pradesh and Maharashtra will sell 5 percent each, Disinvestment Secretary Sumit Bose told reporters in Mumbai on July 26.
Spokespeople at the shortlisted banks didn’t immediately respond to e-mails seeking comment. K.J. Singh, the chairman of the company, didn’t immediately respond to an e-mail.
Manganese Ore, set up in 1896, is the nation’s largest producer of the ore, meeting 65 percent of domestic demand.
To contact the reporter on this story: Ruth David in Mumbai at firstname.lastname@example.org
To contact the editor responsible for this story: Brett Miller at Bmiller30@bloomberg.net