Centre Likely To Invite Financial Bids For Privatising NMDC Steel

Centre is likely to invite financial bids for privatising the National Mineral Development Corporation (NMDC). NMDC is a Navratna Public Sector Enterprise under the Ministry of Steel.

As per reports, the decision was taken following the commissioning of the blast furnace at the company's steel plant in Chhattisgarh.

According to information, once this blast furnace of the steel plant becomes operational, the value of the company is expected to go up. NMDC Steel Limited (NSL) is also expected to have a production capacity of 3 million tonnes per annum.

After the NSL was split off from the NMDC, one of India's biggest iron ore producers, the government acquired a 60.79 per cent share in the company. The government is willing to transfer management control and 50.79 per cent of its shares to a private business. According to the current market value, the government would receive almost Rs 6,500 crore from this.

For the corporation, the government had received a number of preliminary bids or expressions of interest. The fair worth of NSL won't be understood until the blast furnace is up and producing, though.

Financial bids would be invited only after investors gain confidence about the real capacity of the company. NMDC Steel, which was listed on the stock exchanges in February this year at Rs 30.25, is currently trading at around Rs 44 a share. The balance 10 per cent stake of the government would be offered to NMDC after the strategic buyer for 50.79 per cent stake is selected.