Indian Government has invited expressions of interest for selling its 50.79% stake in NMDC Steel. According to the preliminary information memorandum published by the Department of Investment and Public Asset Management, the last date for submission of EoIs by interested bidders, who must have a net worth of INR 5,000 crore, is 27 January 2023. 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. Additionally, the Centre would offer a 10% stake in NSL to NMDC after the strategic buyer has been identified through the bidding process DIPAM has engaged SBI Capital Markets as the Transaction Advisor, J Sagar & Associates as the Legal Advisors and Protocol Insurance Surveyors as the Asset Valuers for providing advisory services and managing the transaction. 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. The plant, with steelmaking capacity of 3 million tonne per annum, is yet to be commissioned fully. It is scheduled for completion by March 2023
Indian Government has invited expressions of interest for selling its 50.79% stake in NMDC Steel. According to the preliminary information memorandum published by the Department of Investment and Public Asset Management, the last date for submission of EoIs by interested bidders, who must have a net worth of INR 5,000 crore, is 27 January 2023. 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. Additionally, the Centre would offer a 10% stake in NSL to NMDC after the strategic buyer has been identified through the bidding process DIPAM has engaged SBI Capital Markets as the Transaction Advisor, J Sagar & Associates as the Legal Advisors and Protocol Insurance Surveyors as the Asset Valuers for providing advisory services and managing the transaction. 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. The plant, with steelmaking capacity of 3 million tonne per annum, is yet to be commissioned fully. It is scheduled for completion by March 2023
