Government of India raised $1.1 billion (Rs 5,900 crore) by offloading its 10 per cent stake in public sector miner NMDC Ltd, taking a big leap towards its aims to pocket $5.5 billion (nearly 30,000 crore) by selling its stakes in public sector companies.

The government offered a total of 396.47 million shares in NDMC, at a floor price of Rs 147 apiece, an 8 percent discount to Tuesday's closing price of Rs 159 apiece.

According to available exchange data, the issue attracted bids for 686.92 million shares at an indicative average price of Rs. 149.15 apiece.

The issue bolstered the government's confidence as it showed that foreign as well as domestic institutional investors are interested in public sector stocks at the reasonable price.

Jagannadham Thunuguntla, of SMC Global Securities, said, "The message is loud and clear--a quality asset at the right price will find a buyer."

With production capacity of 30 million tones per annum, NMDC accounts for nearly 15 per cent of iron ore mined in India.

The government's stake sale in NDMC was the biggest since a $2.5-billion stake sale in state-run Oil & Natural Gas Corp (ONGC) at the end of the FY2011-12.