New Delhi, Dec 16 The Department of Investment and Public Asset Management (DIPAM) has rounded off 2024 with the successful completion of the strategic disinvestment of Ferro Scrap Nigam Ltd (FSNL) and the GIC Re Offer for Sale, DIPAM Secretary Tuhin Kanta Pandey said on Monday.
"Department of Investment and Public Asset Management (DIPAM) successfully completed the strategic disinvestment of Ferro Scrap Nigam Ltd (FSNL) at Rs 320 crore, transferring 100 per cent equity and management control," the Secretary wrote on X.
DIPAM successfully concluded the GIC Re Offer for Sale #OFS, raising Rs 2,345.55 crore by divesting 3.39 per cent of the government’s stake, he further stated.
“DIPAM continues to generate value for investors through the Offer for Sale and listing route for CPSEs.
The Cabinet Committee of Economic Affairs (CCEA) had approved the sale of 100 per cent equity shareholding of MSTC Ltd in Ferro Scrap Nigam Ltd (FSNL) to Konoike Transport Co Ltd of Japan for Rs 320 crore.
FSNL, a wholly owned subsidiary of MSTC Ltd under the Ministry of Steel, was incorporated in 1979 to provide steel mill services, specialising in the recovery and processing of scrap generated during iron and steel production across various steel plants.
The completion of the sale, in September this year, marks the culmination of a strategic disinvestment process initiated in October 2016 when the CCEA granted ‘in-principle’ approval for the sale of MSTC’s equity stake in FSNL to a strategic buyer.
The disinvestment was executed through a two-stage auction process, overseen by a multi-layered decision-making mechanism 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 final day of the issue. The Centre, which held 85.78 per cent of the reinsurance company as of June 30, offered to sell up to 5.95 crore shares, representing 3.39 per cent of the total equity capital.
Shares of GIC Re, the country’s largest reinsurance company, had rallied over 75 per cent in the year ahead of the offer for sale with the company being valued at Rs 69,825 crore.
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