Business Standard reported that the state owned Odisha Mining Corporation, a minority shareholder in the MMTC managed Neelachal Ispat Nigam Ltd, proposes to buyout shares of another state company, Industrial Promotion and Investment Corporation Ltd, to have a greater say in the running of the steel PSU.
Currently, the principal promoter MMTC Ltd holds 49% stake in NINL with the rest shares being held by OMC, IPICOL and National Mineral Development Corporation.
Mr Saswat Mishra CMD of OMC said that “The entire 27.61% shareholding of government of Odisha should be consolidated. Since OMC supplies iron ore from its Daitari mines to NINL, and iron ore mines and steel plants are internally linked to each other, it would be better if OMC buys out IPICOL’s stake and increases its holding to 27.61%.”
Mr Mishra said that OMC, being a cash rich entity, will have no problem in buying out the IPICOL shares.
He said that “IPICOL will get about INR 150 crore, which can be utilized by the company for promotion of other industries in the state.”
The move behind increasing stake in NINL is to have a voting right during the managerial decision of the company, which is currently run by single majority shareholder MMTC. As per the company laws, a person or entity having 25% or more share in a company can effectively block any major decision.
