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Govt to list NEEPCO, MSTC, invites bids from merchant bankers

Press Trust of India  |  New Delhi 

The government has invited bids from merchant bankers for managing the listing process of two PSUs and MSTC.

The government currently holds 89.85 per cent stake in trading firm MSTC and the balance 10.15 per cent is held by the members of the and Ispat Industries Ltd.

(NEEPCO, which meets about 35 per cent of the of the North-East region, is wholly-owned by the government.

The listing would entail disinvestment of a portion of paid-up equity of and MSTC through a prospectus based Initial Public Offer (IPO) in the domestic market, the and Public Asset Management (DIPAM) said while inviting bids from merchant bankers.

"A part of the public offering will be reserved for employees of the company. The eligible employees and will be offered shares at a discount on the issue price," the DIPAM said.

The government will appoint up to four merchant bankers for and two for MSTC and bids have to be submitted by May 3, 2018.

In July last year, the DIPAM had floated the Request for Proposal (RFP) for appointing merchant bankers for listing of NEEPCO and MSTC. However, the appointment of bankers was put on hold.

NEEPCO had posted a profit after tax for the 2016-17 fiscal of Rs 240.46 crore. As on March 31, 2017, its net worth stood at Rs 5874.50 crore.

Under the administrative control of steel ministry, MSTC's profit after tax for the fiscal 2017-18 stood at Rs 72.09 crore as on March 31, 2018, and net worth of Rs 560.28 crore.

The government plans to raise Rs 80,000 crore this fiscal through PSU disinvestment, as against over Rs 1 lakh crore in the previous fiscal.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, April 12 2018. 15:35 IST