NEW DELHI: With the government planning to sell 25 per cent stake in each of the two public-sector undertakings -- MSTC and NEEPCO-- the Department of Investment and Public Asset Management (DIPAM) is scouting for 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 merchant bankers are required to submit their bids by August 16, 2017.
The government currently holds 89.85 per cent stake in Metal Scrap Trading Corporation (MSTC) while the remaining stake - 10.15 per cent - is held by the members of the Steel Furnace Association of India and Ispat Industries Limited.
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 government will appoint up to four merchant bankers for NEEPCO and two for MSTC.
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 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.