Shorlisted Bidders for Steel Plant Acquisition Announced

SEATTLE (Scrap Monster):  The shortlisted bidders for acquisition of assets of state-owned integrated steel plant assets of Neelachal Ispat Nigam Limited (NINL) have been announced. A total of four steelmakers is said to have been shortlisted, from among companies that had earlier submitted expression of interests (EoIs). The four shortlisted companies are ArcelorMittal, JSW Steel, Megha Engineering and Infrastructure Limited (MEIL) and Tata Steel.

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As per reports, the request for proposal (RPF) as well as draft share transfer agreement has been issued. Also, site visits have been scheduled. Further to this, financial bids will be accepted.

SBI Capital Markets Ltd acts as the adviser for the proposed divestment of NINL’s steel assets located at Kalinganagar, along with its captive iron ore mine resources located in Sundergarh and Keonjhar districts.

Meantime, the Department of Investment and Public Asset Management (DIPAM) confirmed that the transaction is moving ahead on schedule.

The divestment offer had received huge interest from potential buyers, especially due to projections that steel demand in the country is likely to grow in double digits in FY22. The resurgent steel prices are likely to deliver robust performance by steel sector companies in the country.