The Department of Investment and Public Asset Management (DIPAM) has received multiple expressions of interest (EOIs) for the strategic disinvestment of Ferro Scrap Nigam Limited (FSNL). The statement comes a month after the central government extended the deadline for bid submission.
“Multiple expressions of interest (EOIs) received for strategic disinvestment of Ferro Scrap Nigam Ltd (FSNL) — a wholly owned subsidiary of MSTC Ltd.,” DIPAM secretary Tuhin Kanta Pandey tweeted on Monday.
The finance ministry had first invited bids at the end of March for offloading the government’s entire equity shareholding in FSNL. The Cabinet Committee on Economic Affairs (CCEA) had accorded its ‘in-principle’ approval to disinvest entire equity shareholding held through MSTC in FSNL and transfer of management control in October 2016. DIPAM is overseeing the strategic disinvestment, while BDO India LLP has been roped in as the transaction advisor.
As per the last deadline revision, the last date for submitting bids for the company was June 17. Interested bidders submitting bids electronically could furnish physical copies of the same by June 24. The shortlisted bidders will be intimated on July 8.
FSNL, incorporated in 1979, is a Mini Ratna II, IMS-certified central public sector enterprise (CPSE) under the administrative control of the Ministry of Steel. The company is a specialised steel mill service provider engaged in processing steel mills slag for recovery of iron scrap and other metallics. It is presently working across nine steel plants in India. The company offers services for dig and haul of blast furnaces and steel melting shop slag at slag yards, processing of iron and steel skulls, mill rejects and maintenance scrap.
The company’s authorised capital as on March 31, 2021, stands at ₹50 crore, while paid-up share capital is ₹32 crore. The entire paid-up capital is held by MSTC.
The strategic disinvestment of FSNL is expected to be completed in the current fiscal. The central government has budgeted disinvestment receipts to the tune of ₹65,000 crore in FY23.
Following the news, shares of FSNL parent, MSTC, rose to an intraday high of ₹272.70 apiece, against the day’s open of ₹262. The stock lost the early gains though, and was trading at ₹251.20 at the time of reporting, down 11.05 points or 4.21%.