Few questions related to the sale process
- Any guess how will the Karnataka election results impact the privatization focus of the government?
- Typically 6 months prior to election, all discretionary policies take back seat. So this sale process has to finish by November 2023 at the latest or it will get pushed to post-election in FY2025. And current process does not look fast enough to complete the sale in the next 6 months. Is this a cause of concern?
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Especially as steel cycle is going through challenges and NMDC mgmnt has no idea of how to run a steel plant and MEKON consultant is doing full O&M of a steel plant ‘for-the-1st-time’ (boiler commissioning faced significant challenges in 2022).
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And delay in privatization will eat up the BV and increase debt at the same time as 1st year of operations should result in losses as only 1 MT will be operational (of the 3 MT).
txs – Ritesh
Disclaimer: Invested 0.25% of PF at 32ish and deliberating to sell or add further if more data point emerges
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