The Orisssa government will shortly take a call on proposal of Orissa Mining Corporation (OMC) to buy out the shares of another state-owned company, Industrial Promotion & Investment Corporation of Orissa Ltd (Ipicol), in Neelachal Ispat Nigam Ltd (NINL).
The decision will be taken at a high-level meeting to be held under the chairmanship of state Chief Secretary B K Patnaik on November 15.
Ipicol and OMC were holding 4.06 per cent and 22.33 per cent equity respectively in NINL, a steel firm jointly promoted by MMTC Ltd and the state government. Post rights issue, the equity holdings of Ipicol and OMC stood at 15.29 per cent and 12.32 per cent. Now, OMC has evinced interest in buying Ipicol's stake in the steel PSU.
Justifying its move to acquire Ipicol's stake in NINL, OMC said though the combined equity holding of Ipicol and OMC in NINL is 26.29 per cent, technically, neither of the two state firms can independently exercise the power to restrict passing of a special resolution by the NINL which allows the company to take all critical decisions affecting the interest of the shareholders.
“It will be perhaps wise in the interest of the state government if 26.29 per cent shares of NINL are held by either Ipicol or OMC. Since OMC is supplying iron ore to NINL from its Daitari mines, it will perhaps be better if the shares of NINL held by Ipicol are purchased by OMC so that OMC alone holds entire 26.29 per cent stake,” OMC managing director Saswat Mishra said in a letter to Ipicol chairman and managing director C J Venugopal.
