The government is planning to invite expressions of interest for the divestment of Rashtriya Ispat Nigam Limited (RINL) and its subsidiary by the end of January 2023.
Tata Steel, JSW Steel and Adani Group have shown “strong interest” in the entity during the pre-bid consultations held in early December, said people familiar with the development. “We have received very positive responses for RINL during the roadshows. Seven companies, including Tata Steel, Adani Group and JSW Steel, have expressed strong interest,” said one of the persons, who did not wish to be identified.
The Centre held a roadshow in November last week for the strategic sale, followed by another round of consultation on December 2, attended by all major steel firms.
JSW Steel declined to respond to ET’s queries.
Queries sent to Tata Steel and Adani Group remained unanswered till press time.
Tata Steel CEO TV Narendran was quoted in media reports as saying that the company would be interested in buying the plant, calling it a “great opportunity” because of its coastal location.
‘Working Out Transaction Structure’
About 22,000 acres of land owned by RINL is a key attraction for potential bidders, as is its proximity to the Gangavaram Port, which is owned by Adani Group.
The valuation of the company is likely to be finalised by December-end, the person said, adding that the government is proposing to sell 100% stake in one go. “We are aiming to divest the entire stake in one go depending on the valuation… These issues are being examined and will be finalised shortly,” said the person.
“We are going forward in working out the transaction structure,” Department of Investment and Public Asset Management Secretary Tuhin Kanta Pandey told ET, but declined to divulge details.
The Centre also held one round of discussions with the company’s employee union, which is opposed to the proposed sale, and assured that employees’ interests would be protected while deciding the terms and conditions of the strategic sale.
The Cabinet Committee on Economic Affairs had given in-principle approval in January 2021 for the sale of 100% strategic disinvestment of the government shareholding in RINL.
The company is among the top six steel producers in the country, with an annual capacity of about 7.5 million tonnes. It supplies structural steel to many players, including ArcelorMittal Nippon Steel. The company reported a profit of Rs 913 crore and a turnover of Rs 28,215 crore for 2021-22.
