Strategic Disinvestment of Neelachal Ispat Nigam Limited (NINL) completed

Tata Steel Long Products Limited takes over NINL

Neelachal Ispat Nigam Limited (NINL) is a Joint Venture of 4 CPSEs, namely MMTC (shareholding of 49.78%), NMDC (10.10%), BHEL (0.68%), MECON (0.68%) and 2 Odisha Government PSUs, namely OMC (20.47%) and IPICOL (12.00%).

MNINL Strategic Disinvestment transaction has been completed today with the transfer of 93.71% shares of the Joint Venture Partners (4 CPSEs and 2 Odisha Govt. PSUs) to the Strategic Buyer, M/s Tata Steel Long Products Limited. The Enterprise Value paid by the Strategic Buyer is Rs. 12,100 Crores. This payment has been utilized as per the SPA for settlement of dues of employees, operational creditors, secured financial creditors and sellers (operational and financial dues) and for equity of selling shareholders as per SPA.

Following approval of the highest price bid of M/s Tata Steel Long Products Limited on 31st January 2022, the Letter of Award (LOA) was issued to the winning bidder on 2nd February 2022. The Share Purchase Agreement (SPA) was signed on 10th March 2022. Thereafter, the Strategic Partner, NINL and the six Selling Shareholders worked towards satisfying a set of conditions defined in the SPA including certification of operational creditor’s dues, employees’ dues, Sellers’ operational dues and Sellers’ financial dues. These conditions have since been met to mutual satisfaction.

Disclaimer : This is an official press release by PIB.