+
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

Next Story
Infrastructure Urban

Naidu Seeks Rs 563 Crore For AP Sports Infrastructure

Andhra Pradesh Chief Minister N Chandrababu Naidu has sought Rs 563 crore from the Centre to boost sports infrastructure in the state, including Rs 538 crore for stadium development and Rs 25 crore to host the Khelo India Martial Arts Games 2025. Naidu made the request during a meeting with Union Youth Services and Sports Minister Mansukh Mandaviya in New Delhi on Wednesday.The CM urged early completion of Khelo India infrastructure projects in Tirupati, Rajahmundry, Kakinada, and Narasaraopeta, and called for an international-standard badminton training centre and a national aquatic sports hu..

Next Story
Infrastructure Transport

Tough Bidding Norms Slow NHAI Road Project Awards

Stringent bidding rules imposed by the Ministry of Road Transport & Highways (MoRTH) have led to a slowdown in project awards by the National Highways Authority of India (NHAI), despite a robust Rs 3.5 trillion pipeline. According to an HDFC Securities report, the shift to more cautious developer models now favours firms with strong balance sheets, as tighter qualification norms limit aggressive bidders.The revised norms mandate additional performance security, targeting the exclusion of players that previously submitted low bids—often 25 to 40 per cent below NHAI cost estimates—raisin..

Next Story
Infrastructure Transport

Mumbai Gets Coastal Nod for Next Promenade Phase

As Mumbai prepares to open two major sections of its expansive seafront promenade this week, the city’s civic authority has secured a key coastal clearance to advance further construction. The Maharashtra Coastal Zone Management Authority (MCZMA) has approved the commencement of work on the segment between Haji Ali and Baroda Palace, with tendering expected soon after project cost assessments.The promenade, stretching 7.5 km in length and 20 metres wide, is being designed as a flagship open space for walkers, joggers, and cyclists. Two critical stretches—2.75 km from Tata Garden to Haji Al..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?