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The Union Government’s proposal to merge Eastern Investments Ltd with Rashtriya Ispat Nigam Ltd has gathered pace, sources say. This follows the Centre’s decision to defer the amalgamation of Bisra Stonelime Co Ltd with Orissa Mineral Development Co Ltd as also RINL’s divestment proposal.
Eastern Investments, a Calcutta Stock Exchange-listed small NBFC, is the holding company of two mining companies – Orissa Mineral Development Co Ltd (OMDC) and Bisra Stonelime Co Ltd (BSCL).
EIL Managing Director Satish Chandra confirmed the development to Business Line. “The board of EIL and the Government have already approved the proposal.”
Ground work
The Union Ministry of Steel, according to sources, has changed preferences in tune with the ground realities. “The Government had earlier had ‘in principle’ approved the merger proposal of EIL with RINL as a part of the second round of restructuring. In the first round in 2010, EIL became the subsidiary of RINL and holding company of the mining outfits – all earlier owned directly by the Government,” a top source explained.
RINL board now needs to approve the proposal to kick start the preparatory work such as valuation of EIL, engaging of merchant bankers and draft amalgamation scheme.
The thinly traded EIL stock is currently ruling at Rs 2,436.45 on the CSE. Large chunk of it – around 28 per cent -- is still in physical format.
>jayanta.mallick@thehindu.co.in
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