New Delhi, Jan 12 (PTI) The government on Thursday said it received in-principle approval from the BSE on December 30, 2022, for listing of NMDC Steel Ltd (NSL).

Currently, the government holds a 60.79 per cent stake in NSL, which is the steel manufacturing facility of India's largest iron ore producer NMDC located in Nagarnar, Chhattisgarh.

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NSL is up for privatisation with the government looking to sell 50.79 per cent of its shareholding, along with management control. The last date for putting in preliminary bids or Expression of Interest (EoI) is January 27.

In response to pre-bid queries received from interested bidders, the Department of Investment and Public Asset Management (DIPAM) said the Ministry of Corporate Affairs on October 6, 2022, approved the demerger of the steel manufacturing unit at Nagarnar from NMDC. The demerged entity would be NMDC Steel Ltd (NSL).

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Subsequent to demerger, shares of NSL will be listed on BSE, National Stock Exchange of India Limited and Calcutta Stock Exchange.

"The listing process (of NSL) is ongoing. In principle approval from BSE for listing of 29,30,605,850 equity shares of Rs 10 each pursuant to Scheme of Arrangement between NMDC Ltd and NSL has been obtained on December 30, 2022," DIPAM said.

As per current estimates, the targeted date for commissioning of the steel manufacturing plant NSL is March 31, DIPAM said.

NSL is expected to have a production capacity of 3 Million Tonne Per Annum (MTPA).

In October 2020, the CCEA gave its 'in-principle' approval to the demerger of the Nagarnar steel manufacturing unit from NMDC and strategic disinvestment of the resulting entity by selling entire stake of the Government of India.

Following that the government on December 1, 2022, invited bids for buying 50.79 per cent stake in NSL. 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.

To a query on whether NMDC will have certain special shareholder rights pursuant to its 10 per cent stake in NSL, the DIPAM said, "Further details regarding supplementary transaction would be provided to shortlisted bidders during Stage II of the transaction through Definitive Agreement(s)".

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)