New Delhi: The government has received multiple preliminary bids for the privatisation of NMDC Steel Ltd (NSL), said DIPAM Secretary Tuhin Kanta Pandey on Friday. Currently, the government holds a 60.79 percent stake in NSL, which is the steel manufacturing facility of India's largest iron ore producer NMDC located in Nagarnar, Chhattisgarh.
NSL is up for privatisation with the government looking to sell 50.79 percent of its shareholding, along with management control. The government had on December 1, 2022, invited preliminary bids or expressions of interest (EoI) for the strategic sale and the last date for putting in bids was January 27. "Multiple Expressions of Interest (EoI) received for the strategic disinvestment of NMDC Steel Ltd (NSL)," Pandey tweeted. The transaction will now move to the second stage, he added.
In response to pre-bid queries received from interested bidders, the Department of Investment and Public Asset Management (DIPAM) had earlier said that the Ministry of Corporate Affairs on October 6, 2022, approved the demerger of the steel manufacturing unit at Nagarnar from NMDC. The demerged entity would be NMDC Steel Ltd (NSL).
Subsequent to the demerger, shares of NSL will be listed on BSE, National Stock Exchange of India Limited and Calcutta Stock Exchange. As per current estimates, the targeted date for commissioning of the steel manufacturing plant NSL is March 31, said DIPAM. NSL is expected to have a production capacity of three million tonne per annum (MTPA).
In October 2020, the CCEA gave its 'in-principle' approval to the demerger of the Nagarnar steel manufacturing unit from NMDC and strategic disinvestment of the resulting entity by selling the entire stake of the central government.
Following that the government on December 1, 2022, invited bids for buying a 50.79 percent stake in NSL. The balance of 10 percent stake of the government would be offered to NMDC after the strategic buyer for the 50.79 percent stake is selected.
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)