As discussed earlier in this thread, the NINL was sold around 10K crore for 1 MT plant. But with all the increase due to inflation in raw material prices and labour cost the replacement cost of a new steel plant will be much higher. So at a minimum, 30K crores valuation seems plausible. Here is an article that says the steel plant could fetch up to USD 4 billion.
However, whatever value they come up with, NMDC will have to cough up the dough for the 10% stake. So NMDC share holders will lose a little but gain a lot if they hold on to NMDC steel till the stake sale goes through. I don’t see how the govt will sell for a subpar valuation. However, probability of a good outcome seems better than 50%. Please note, just a novice here. Not an expert.
Disc: Hold.
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