The government on Monday approved the sale of Neelachal Ispat Nigam Limited (NINL) to Tata Steel Long Products. NINL was on divestment by the government.

Share Market Live

NSE

“The government of India does not hold any equity in the company. However, on the request of the Boards of selling shareholder PSEs and on concurrence by the Govt of Odisha, CCEA ‘in-principle’ approved strategic disinvestment of NINL on 8.1.2020, and authorised Department of Disinvestment & Public Asset Management to undertake the transaction," read an official release.

"The highest bid of M/s Tata Steel Long Products Limited for 93.71 percent of shares of Joint Venture partners of 4 CPSEs and 2 Odisha Govt State PSEs at the Bid Enterprise Value of Rs 12,100 crore," the statement said.

NINL is a joint venture of 4 CPSEs -- MMTC, NMDC, BHEL, MECON and 2 Odisha government PSUs -- OMC and IPICOL. NINL has an integrated steel plant with a capacity of 1.1 MT, at Kalinganagar, Odisha. The company has been running in huge losses and plant is closed since March 30, 2020.

The transaction was made through an open-market, competitive bidding process towards the enterprise value of the company. The Expressions of Interest (EoI) were invited on January 25, 2021, and multiple EoIs were received by the due date of March 29, 2021.

First Published:Jan 31, 2022 3:09 PM IST