Tata Steel Long Products (TSLP), a Tata Steel unit, has commenced operations at its subsidiary Neelachal Ispat Nigam Ltd. (NINL) in Duburi, Jajpur district of Odisha.
TSLP has restarted the blast furnace at its subsidiary NINL, just 90 days after the completion of its acquisition on July 4, 2022. The site was not in operation for nearly two years and TSLP has achieved the milestone in 90 days. Tata Steel is now focusing to ramp up its production capacity and is planning to build a dedicated 4.5 million tonne per annum long products complex over the next few years.
Earlier in January 2022, TSLP won the bid to acquire NINL at an enterprise value of Rs 12,100 crore, leaving behind the entities like, consortium of Jindal Steel and Power Limited, Nalwa Steel and Power Ltd and JSW Steel Limited.
Over six months after Tata Steel arm – Tata Steel Long Products – won the bid to acquire a 93.71 per cent stake in Neelachal Ispat Nigam Limited (NINL), the strategic disinvestment of NINL was completed on 04 July 2022.
NINL is a Joint Venture of 4 CPSEs, namely MMTC (shareholding of 49.78 per cent), NMDC (10.10 per cent), BHEL (0.68 per cent), MECON (0.68 per cent) and 2 Odisha Government PSUs, namely OMC (20.47 per cent) and IPICOL (12.00 per cent).
The enterprise value paid by TSLP is Rs 12,100 crore. This payment has been utilised as per the Share Purchase Agreement (SPA) for settlement of dues of employees, operational creditors, secured financial creditors and sellers (operational and financial dues) and for equity of selling shareholders as per SPA.
After the approval of the highest price bid of TSLP was on 31 January, 2022, the Letter of Award (LOA) was issued to the winning bidder on 02 February 2022 and the SPA was signed on 10 March 2022.
Thereafter, TSLP, NINL and the six selling shareholders worked towards satisfying a set of conditions defined in the SPA including certification of operational creditor’s dues, employees’ dues, Sellers’ operational dues and Sellers’ financial dues, which have been met to mutual satisfaction.
