By Malvika Gurung
Investing.com -- Shares of Metals and Minerals Trading Corporation (MMTC (NS: MMTC )) surged 8.81% to Rs 42.6 apiece at 11:10 am, on successfully transferring all of its 49.78% stake held in Neelachal Ispat Nigam (NINL) to the Tata Group firm Tata Steel Long Products (NS: TTST ) on Monday.
NINL has become the second successful privatisation by the Indian government after Air India.
The finance ministry said on Monday that Tata Steel (NS: TISC ) has completed the acquisition of a 93.71% stake in NINL through subsidiary TSLP. Neelachal Ispat was a joint venture of four Central PSEs (CPSE), namely MMTC, NMDC (NS: NMDC ), BHEL (NS: BHEL ) and MECON, along with two PSUs under the Odisha government - IPICOL and OMC.
By being sold to Tata Steel Long Products, NINL has become its subsidiary and an indirect subsidiary of the steelmaker Tata Steel.
The share purchase agreement was signed on March 10 and on January 31, TSLP was declared the winning bidder for the loss-making 1 MT capacity NINL at bids worth Rs 12,100 crore.
The transaction was completed on July 4 via equity shares purchase and non-convertible redeemable preference shares.
The sum of Rs 12,000 crore has been used for settlement of dues of employees, operational creditors, secured financial creditors and sellers (operational and financial dues) and for equity of selling shareholders, stated the SPA.
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