NINL to offload 10 per cent stake; to float IPO
State-run steelmaker Nilachal Ispat Nigam is planning to offload at least 10 per cent stake and hit markets soon to raise about Rs 80 crore.
By PTI |
NEW DELHI: State-run steelmaker Nilachal Ispat Nigam is planning to offload at least 10 per cent stake and hit markets soon to raise about Rs 80 crore even as the Steel Ministry has sought the Committee of Secretaries' opinion to bail out the PSU from its current fiscal morass.
"NINL management will seek the approval of its Board of Directors on diluting at least 10 per cent stake, besides floating an IPO soon to mobilise about Rs 80 crore to infuse a fresh lease of life in its operations and enable it withstand the stiff competition from other steelmakers," a top government official told PTI.
This move by NINL comes after the Orissa government, its key stakeholder, refused to offload its stake in the firm at Rs 27 per share as a prelude to its merger with steel giant SAIL.
IDBI Capitals, appointed by the Orissa government, had pegged the share value of NINL at Rs 27. But the state government had shot down the price and refused to offload its stake citing that it was on the lower side. It argued that IDBI did not factor in the iron ore mines granted to NINL, while making its evaluation.
Iron ore mines spreading over 1,850 acres in Sundergarh and Keonjhar districts of the coastal state have been allotted to NINL.
The Orissa government through Industrial Investment Promotion Corporation of Orissa (IPICOL) holds 22 per cent stake in NINL. Besides, it controls another 4 per cent equity through the Orissa Mining Corp. Also, while MMTC is the major stakeholder, MECON and other equipment suppliers have some stakes in NINL.
"NINL management will seek the approval of its Board of Directors on diluting at least 10 per cent stake, besides floating an IPO soon to mobilise about Rs 80 crore to infuse a fresh lease of life in its operations and enable it withstand the stiff competition from other steelmakers," a top government official told PTI.
This move by NINL comes after the Orissa government, its key stakeholder, refused to offload its stake in the firm at Rs 27 per share as a prelude to its merger with steel giant SAIL.
IDBI Capitals, appointed by the Orissa government, had pegged the share value of NINL at Rs 27. But the state government had shot down the price and refused to offload its stake citing that it was on the lower side. It argued that IDBI did not factor in the iron ore mines granted to NINL, while making its evaluation.
Iron ore mines spreading over 1,850 acres in Sundergarh and Keonjhar districts of the coastal state have been allotted to NINL.
The Orissa government through Industrial Investment Promotion Corporation of Orissa (IPICOL) holds 22 per cent stake in NINL. Besides, it controls another 4 per cent equity through the Orissa Mining Corp. Also, while MMTC is the major stakeholder, MECON and other equipment suppliers have some stakes in NINL.
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