Kolkata, Dec 01: Even as decks are yet to be cleared for disinvestment of public sector companies following the imbroglio over HPCL and BPCL, Kolkata-based Maithan Alloys Limited (MAL), promoted by B K and S C Agarwalla, is preparing to participate in the disinvestment of Manganese Ore India Limited (MOIL). A senior official said MAL intends to participate in the disinvestment process of MOIL, the oldest and largest producer of manganese ore in India, and as such has formed a consortium 'Madhya Bharat SPV Holding Pvt Ltd' to acquire 69.43 per cent shareholdings in the public sector company.
The consortium formed along with other companies such as Nav Bharat Ferro Alloys Limited, Chhattisgarh Electric Co Ltd and Shyam Ferro Alloys Limited would raise Rs 75 crore for acquisition of MOIL, the official said.
UTI Bank has been appointed to act as turnkey financial advisor and to finance the scheme in which MAL would have to invest upto Rs 15 crore by way of equity in the SPV and also provide corporate guarantee for upto Rs 30 crore in favour of the bank or its consortium to enable them to fund the above scheme.
Meanwhile, the company was also working to increase its authorised capital to Rs 15 crore from Rs 10 crore at present by creation of 5,00,000 cumulative non-convertible redeemable preference shares of Rs 100 which will carry an interst of ten per cent interest each to raise resources to participate in the disinvestment
Bureau Report