+
Tata Steel arm bags majority govt stake in NINL for Rs 12,100 cr
Steel

Tata Steel arm bags majority govt stake in NINL for Rs 12,100 cr

Tata Group in their second acquisition of a public sector undertaking (PSU) in the same week bagged a major stake in the Neelachal Ispat Nigam (NINL).The deal gives a boost to the privatisation drive of the government. It further showcases the private sector investors’ interest in the Centre’s assets.

The divestment of the 93.7% stake in NINL was approved by an Alternate Mechanism that had Union Ministers Nitin Gadkari, Nirmala Sitharaman, and Piyush Goyal. The stake was handed over to Tata Steel Long Products (TSLP) for Rs 12,100 crore.

Rs 5,616.97 crore was the reserve price that had been set and approved by the Cabinet Secretary-headed Core Group of Secretaries on Divestment for the PSU. Two other bidders had also submitted their bids which include JSW Steel and consortium of Jindal Steel and Power and Nalwa Steel and Power. The Tata Group arm beat both these bidders.

There won’t be any divestment receipts for this exchequer after the sale because the Centre does not own any direct stake in the NINL.

Tata Steel has a 74.91% stake in Tata Steel Long Products.The buyer has to pay 10% of the bidding amount that will later be deposited in an escrow account. The previous clause of depositing 100% of the bid amount on the execution date was amended by the government on the basis of bidders’ demand.

On the transaction's closure date, the shares will be handed over to the new buyer and the remaining will be used in alignment with the waterfall agreement which was signed amongst the selling shareholders.

Image Source

Tata Group in their second acquisition of a public sector undertaking (PSU) in the same week bagged a major stake in the Neelachal Ispat Nigam (NINL).The deal gives a boost to the privatisation drive of the government. It further showcases the private sector investors’ interest in the Centre’s assets. The divestment of the 93.7% stake in NINL was approved by an Alternate Mechanism that had Union Ministers Nitin Gadkari, Nirmala Sitharaman, and Piyush Goyal. The stake was handed over to Tata Steel Long Products (TSLP) for Rs 12,100 crore. Rs 5,616.97 crore was the reserve price that had been set and approved by the Cabinet Secretary-headed Core Group of Secretaries on Divestment for the PSU. Two other bidders had also submitted their bids which include JSW Steel and consortium of Jindal Steel and Power and Nalwa Steel and Power. The Tata Group arm beat both these bidders. There won’t be any divestment receipts for this exchequer after the sale because the Centre does not own any direct stake in the NINL. Tata Steel has a 74.91% stake in Tata Steel Long Products.The buyer has to pay 10% of the bidding amount that will later be deposited in an escrow account. The previous clause of depositing 100% of the bid amount on the execution date was amended by the government on the basis of bidders’ demand. On the transaction's closure date, the shares will be handed over to the new buyer and the remaining will be used in alignment with the waterfall agreement which was signed amongst the selling shareholders. Image Source

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Infrastructure Opportunity Outlook by IMPACCT.Info

India’s infrastructure pipeline is witnessing dynamic activity across stages — from immediate bidding to future planning. IMPACCT segments these into three categories: Immediate, 3–6 Month, and Future Opportunities, enabling businesses to identify, prepare, and participate in high-value tenders and projects across sectors.To read full article Click Here ..

Next Story
Real Estate

Glass, Reframed!

Glass façades, quintessential aesthetic building envelopes globally, have been widely adopted in India as well. But when the focus is high-performance building systems that deliver energy efficiency, comfort and architectural identity, glass isn’t the only preference. Combination solutions, involving glass and some other material, improve façade outcomes. Some combinations come at comparable prices, some at a higher price. Here is a selection of performance-oriented solutions...To read the full story Click Here ..

Next Story
Infrastructure Urban

Beyond Building Faster

India’s cities are expanding at an unprecedented pace, bringing new infrastructure and development opportunities while also intensifying challenges around mobility, public spaces, liveability and supporting infrastructure. The question, therefore, is not simply whether India can build faster, but whether it can build cities that work better.At a CW webinar, Are We Designing Better Cities – or Just Building Faster?, moderator Ar. Samir Shaikh, Founding Principal, AR&UD Studio, brought together perspectives from design, development, master planning and technology...To read the full artic..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code