The Centre on Thursday set in movement the strategic disinvestment course of of fifty.79% stake in NMDC Steel Ltd. (NSL) by inviting expression of curiosity from bidders.
The EOI doc, issued together with preliminary info memorandum by the Department of Investment and Public Asset Management, stated the decision is for buy of the 50.79% shareholding together with switch of administration management via a single transaction.
The Centre will provide its remaining 10% stake in NSL to mining main NMDC Ltd. submit identification of strategic purchaser via a aggressive bidding course of. NSL can be entity behind the three million tonne built-in metal plant that NMDC is establishing at Nagarnar close to Jagdalpur, Chhattisgarh. The estimated challenge price of the plant is ₹21,940 crore and upto final fiscal, NMDC had incurred ₹20,514.48 crore in direction of building of the plant.
The metal plant, subsequent to the choice of the Centre to disinvest, is being demerged from NMDC and transferred to NSL with the federal government of India proudly owning 60.79% stake and public the remainder. The plant is anticipated to start operations from March 2023.
The demerger scheme was authorized by the Ministry of Corporate Affairs on October 6.
SBI Capital Markets Ltd. (SBICAP) is appearing as transaction advisor for the disinvestment course of. Eligible entities can submit an EoI both independently or as a consortium member. The consortium can have a most of 4 members, together with the Lead Member. January 27 is the final date for submission of EOI.