2024 Highlights: Successful Disinvestment of Ferro Scrap Nigam and GIC Re Offer for Sale
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New Delhi, Dec 16 (NationPress) The Department of Investment and Public Asset Management (DIPAM) has successfully concluded 2024 with the strategic disinvestment of Ferro Scrap Nigam Ltd (FSNL) and the GIC Re Offer for Sale, as announced by DIPAM Secretary Tuhin Kanta Pandey on Monday.
The DIPAM executed the strategic divestiture of Ferro Scrap Nigam Ltd (FSNL) for Rs 320 crore, transferring 100 percent equity and management control, as noted by the Secretary on X.
Additionally, the DIPAM successfully finalized the GIC Re Offer for Sale, raising Rs 2,345.55 crore by divesting 3.39 percent of the government’s stake, he further elaborated.
“DIPAM continues to create value for investors through the Offer for Sale and listing strategy for Central Public Sector Enterprises (CPSEs). By ensuring comprehensive value creation in CPSEs, DIPAM facilitates performance improvement, capital expenditure growth, and trust-based asset creation for investors,” Pandey remarked.
The Cabinet Committee of Economic Affairs (CCEA) approved the sale of 100 percent equity shareholding of MSTC Ltd in Ferro Scrap Nigam Ltd (FSNL) to Konoike Transport Co Ltd of Japan for Rs 320 crore.
FSNL, a fully owned subsidiary of MSTC Ltd under the Ministry of Steel, was established in 1979 to provide steel mill services, focusing on the recovery and processing of scrap generated during iron and steel production across various steel plants.
The sale's completion in September this year marks the end of a strategic disinvestment process that began in October 2016 when the CCEA granted 'in-principle' approval to sell MSTC’s equity stake in FSNL to a strategic buyer.
The disinvestment was carried out through a two-stage auction process, supervised by a multi-layered decision-making structure that involved an Inter-Ministerial Group and a Core Group of Secretaries on Disinvestment.
The two-day offer for sale (OFS) of GIC Re was fully subscribed on the last day of the issue. The Centre, which owned 85.78 percent of the reinsurance firm as of June 30, offered to sell up to 5.95 crore shares, which represents 3.39 percent of the total equity capital.
Shares of GIC Re, the largest reinsurance company in the country, had surged over 75 percent in the year leading up to the offer for sale, with the company valued at Rs 69,825 crore.
