homebusiness Newscompanies NewsGovt invites bids to sell 50.79% stake in NMDC's Nagarnar Steel Plant
Govt invites bids to sell 50.79% stake in NMDC's Nagarnar Steel Plant
Shares of NMDC Ltd ended at Rs 119.95, up by Rs 2.30, or 1.95 percent on the BSE. NMDC is in the process of demerging its 3-million-tonne greenfield steel plant at Nagarnar in Chhattisgarh, built at an outlay of over Rs 20000 crore.
The Department of Investment and Public Asset Management (DIPAM) on Thursday invited expressions of interest (EoIs) for NMDC's Nagarnar Steel Plant (NSL) and offered to sell a 50.79 percent stake in the company.
According to the bidding conditions, eligible entities can submit an EoI either independently or as a consortium member and the consortium shall have a maximum number of four members, including one lead member. Also, the bidder should have a net worth of at least Rs 5,000 crore, and bids can be submitted as a consortium.
Subsequent to the identification of a strategic partner through the bidding process, the government shall offer NMDC a 10 percent stake in NSL.
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NMDC is in the process of demerging its three-million-tonne greenfield steel plant at Nagarnar in Chhattisgarh, built at an investment outlay of over Rs 20,000 crore.
Last month, the Ministry of Corporate Affairs (MCA) approved the demerger of NMDC Steel, the greenfield steel plant in Chhattisgarh, from NMDC Ltd.
Post-demerger, Nagarnar Steel Plant (NSP) will be a separate company. After the demerger, shareholders of NMDC will also be shareholders of the demerged company (NSP) in the proportion of their shareholding. Hence, the government will hold 60.79 percent of NSP, and the remaining stake will be with retail and institutional investors.
The Union Cabinet in October 2020 approved the demerger of the plant from NMDC and the sale of the Centre's entire stake to a strategic buyer. The proceeds from selling the government stake will accrue to the exchequer.
Shares of NMDC Ltd ended at Rs 119.95, up by Rs 2.30, or 1.95 percent on the BSE.
(Edited by : Shoma Bhattacharjee)
First Published: Dec 1, 2022 6:32 PM IST
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