The Center on Monday completed the privatization of Neelachal Ispat Nigam (NINL) by transferring it to Tata group company Tata Steel Long Products (TSLP).
“The strategic disinvestment transaction of NINL completed today with transfer of 93.71% shares of the company by 6 JV partners and shareholders to TSLP, a subsidiary of Tata Steel,” department of investment and public asset management secretary Tuhin Kanta Pandey tweeted.
NINL is the second successful privatization in 2022 after Air India. Air India was also acquired by the Tata group.
NINL is a joint venture of four CPSEs, namely MMTC (49.78%), NMDC (10.10%), BHEL (0.68%), MECON (0.68%), and two Odisha government PSUs, namely OMC (20.47%) and IPICOL (12 %). It has an integrated steel plant with a capacity of 1.1 MT at Kalinganagar (Jajpur), Odisha.
By offering Rs 12,100 crore, the Tatas bested the bids by a consortium of Jindal Steel & Power as well as Nalwa Steel and Power. The reserve price for the ailing NINL had been set at Rs 5,617 crore.
Tata Steel Long Products’ share price closed at Rs 572.5 on Monday, up 0.35% from the previous closing price.