Interested bidders can submit their expression of interest by March 29. NINL was incorporated in 1982 to set-up an integrated steel plant to undertake manufacturing and sale of steel products. NINL has a 1.1 million tonne per annum steel manufacturing unit which produces pig iron and billets. The company reported net sales of 801 crore in Arpil-Dec 2019, and a loss of 826 crore.
The interested bidders should have a minimum net worth of Rs 2,000 crore. Any entity permitted to invest in India can submit an EOI either independently or as a consortium member. Government-owned companies
are not eligible to participate in the transaction. Employees can participate in the bidding process through a consortium considering the net worth criteria is met.
Through the strategic disinvestment, management and control of NINL will be transferred to a new buyer that will include purchase of shares and infusion of funds into NINL that will be used to repay existing debt of the company. Debt repayment will be detailed in the Request For Proposal stage.
Once shortlisted based on criteria, the bidders would be quote on an enterprise value of NINL. The amount payable by successful bidder would be used for settlement of labour dues, operational creditors, commercial lender debt, promoter debt and purchase of 93.71% of shareholding of NINL through a predetermined waterfall mechanism.
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