The Centre has received multiple expressions of interest (EoIs) for its 50.79% stake in the under-construction NMDC Steel (NSL) at Nagarnar in Chhattisgarh.
“Multiple expressions of interest (EoI) received for the Strategic Disinvestment of NMDC Steel Ltd (NSL). The transaction will now move to the second stage,” Department of Investment & Public Asset Management (Dipam) secretary Tuhin Kanta Pandey tweeted.
The last date for submission of EoIs for NSL by interested bidders, who must have a net worth of Rs 5,000 crore, was January 27. After shortlisting eligible bidders, financial bids would be called in the second stage.
After the successful strategic disinvestment of Odisha-based Neelachal Ispat Nigam (NINL), jointly owned by four central PSUs and two Odisha government PSUs, for Rs 12,100 crore in January 2022 to Tata Group, NSL would be the second steel firm to be divested.
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State-run mining major NMDC is setting up a 3 million tonne per annum NMDC Iron and Steel Plant (NISP) at Nagarnar.
Currently, NISP is in the process of being demerged from NMDC into NSL. After the completion of the demerger process, NSL will have mirror shareholding to NMDC, i.e., the Centre’s shareholding of 60.79% and public shareholding of 39.21%. Thereafter, the Centre would divest its 50.79% shareholding in NSL, along with management control, to a strategic buyer through a two-stage, competitive bidding process.
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Additionally, the Centre would offer a 10% stake in NSL to NMDC after the strategic buyer has been identified through the bidding process, Dipam said.
Further, the assets and liabilities of the plant as mentioned in the demerger scheme will be owned/held by NSL. The demerger scheme for NSL has been approved by the ministry of corporate affairs in its hearing on October 6, 2022.
Only the interested bidders found to be meeting the eligibility criteria would be allowed to participate in the next stage of the transaction, which involves detailed due diligence and submission of financial bids.