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The Union Ministry of Finance is likely to invite financial bids for Chhattisgarh-based NMDC Steel (NSL) in the next two months, a senior government official said on the condition of anonymity.
“The government believes that NMDC Steel is a fit candidate under the new disinvestment plan. As the plant is new, it can generate more value to shareholders,” the government official said.
In October 2022, the Centre demerged the Nagarnar steel plant (NMDC Steel) from the parent NMDC, India’s largest iron ore producer, to unlock its value.
On December 1, 2022, the government sought expressions of interest (EOIs) for the strategic sale of NMDC Steel and received several interests for the proposed sale.
NMDC Steel was listed on the stock market in February 2023 at Rs 30.25 per share. As on Friday, the stock price had risen 0.98 per cent to Rs 53.82 apiece, with a market capitalisation of Rs 15,773 crore. The Union government holds a 60.79 per cent stake in NMDC Steel, with the remaining 39.21 per cent held by the public. The government plans to sell 50.79 per cent of its stake and transfer management control.
An email sent to the finance ministry remained unanswered till the time it was going to press.
“Since the company is listed and possesses assets worth Rs 37,000 crore, the listing has already been completed, it has the potential to generate substantial value for shareholders,” official said.
“We are also looking to complete the whole process by this financial year,” official added.
In July 2024, Finance Minister Nirmala Sitharaman had said decisions regarding the privatisation or disinvestment of public-sector undertakings remained unchanged.
“Privatisation or disinvestment is a Cabinet decision, and it has to be honoured. But the timing is something that the government will have to choose,” the minister had said in a post-Budget conference when asked if privatisation remains a focus of the government’s agenda.
“When is the time to disinvest any or several of these companies listed and cleared by the Cabinet has to be decided by the government,” she noted, adding that post the Covid-19 pandemic PSUs including Air India and a steel plant in Odisha have been sold off.
The Union Budget has set the target for miscellaneous capital receipts, including disinvestment, at Rs 50,000 crore for FY25 compared to the Revised Estimate of Rs 30,000 crore for FY24.
