- 01 Feb 2022
- ICICIdirect Research
TATA STEEL LONG PRODUCTS DECLARED WINNING BIDDER OF NINL
News: Tata Steel Long Products Limited (TSLPL) has been identified as the winner of the bidding process to acquire a 93.71% equity stake in the 1 Million tonnes per annum (Mtpa) in the Neelachal Ispat Nigam Limited (NINL) in accordance with the process run by Department of Divestment and Public Asset Management (DIPAM). The total consideration of Rs.12100 crore reflects the enterprise value (including all recorded liabilities) as a part of the acquisition of 93.71% equity stake in NINL. The transaction is scheduled for closure within the next couple of months as per the process timelines announced by DIPAM.
Views: NINL represents a critical and strategic acquisition for TSLPL with ~ 1 Mtpa of steelmaking capacity, 2500 acres of land for future growth and iron ore reserves of~100 million tonnes. Going forward, NINL will become the core of TSLPL’s growth aspirations, as it is intendedto not only restart the 1 million tonnes steel plant expeditiously but also begin work immediately to build a 4.5 Mtpa state of the art long products complex in the next few years, and further expand it to 10 Mtpa by around 2030.
Impact:Neutral