New Delhi: The government is planning to sell up to 25 per cent stake in two PSUs -- MSTC and NEEPCO through initial public offerings (IPOs).
The government currently holds 89.85 per cent stake in Metal Scrap Trading Corporation (MSTC) and the balance 10.15 per cent is held by the members of the Steel Furnace Association of India and Ispat Industries Ltd.
MSTC is a PSU trading firm like MMTC and STC. The government has a 100 per cent holding in NEEPCO, which provides about 35 per cent of the energy requirement of the North East region. NEEPCO has a portfolio of hydro, thermal and renewable (solar) projects.
The Department of Investment and Public Asset Management (DIPAM) has invited bids by August 16 from merchant bankers to manage the IPOs of these two mini-ratna PSUs which are under the administrative control of steel and power ministries, respectively.
The government will appoint up to four merchant bankers for NEEPCO and two for MSTC. It is looking to sell up to 25 per cent stake in each of the two firms, according to an advertisement from DIPAM.
The authorised share capital of MSTC is Rs 50 crore, while paid up equity is Rs 17.60 crore as on January 31, 2017. The profit after tax for the fiscal 2016-17 is Rs 61 crore. As on March 31, 2017, it has a net worth of Rs 528.60 crore.
The authorised share capital of NEEPCO is Rs 5,000 crore and paid up equity capital is Rs 3,452.81 crore as on March 31. The profit after tax for 2015-16 was Rs 372.55 crore and it has a net worth of Rs 5,988.28 crore.