New Delhi: MSTC Ltd held an extraordinary general meeting on Wednesday to seek an approval from shareholders for the privatisation of its subsidiary Ferro Scrap Nigam Ltd (FSNL). In a regulatory filing to the stock exchanges, MSTC said that the extraordinary general meeting (EGM) was called "to approve disinvestment of the entire equity shares held by MSTC in Ferro Scrap Nigam Limited ("FSNL"), material subsidiary of MSTC Limited, along with transfer of management and control."
"The speaker shareholders raised questions and asked queries on the reason, benefits, rationale and financial implications of disinvestment of Subsidiary Company (FSNL), status of COVID-19 vaccination of employees of the company and other general queries. Thereafter the Chairman responded to the queries raised clarifications sought by the members on the business items transacted in the EGM," MSTC told the bourses.
The Centre has begun the process for the privatisation of FSNL in November this year as it floated a request for proposals (RfP) for engaging asset valuers for the process. In a notification released in this regard, the Department of Investment and Public Asset Management (DIPAM) said, "The Government of India has in-principle, decided to disinvest 100 percent equity in Ferro Scrap Nigam Limited (FSNL) – a 100 percent subsidiary of MSTC Ltd through Strategic Sale along with transfer of management control."
FSNL is a Miniratna-II IMS Certified Central Public Sector Enterprise incorporated on March 28, 1979 and having its registered office at Bhillai, Chhattisgarh. It is a wholly owned subsidiary of MSTC Ltd under the administrative control of Ministry of Steel (Government of lndia). FSNL has eight steel plants in the country. The government had earlier sought legal and transaction advisers for the privatisation of FSNL in 2020. However, because of the second wave of COVID-19, the process was stalled.
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