MSTC Ltd. has officially signed a share purchase agreement with Konoike Transport Co. Ltd. for the strategic disinvestment of Ferro Scrap Nigam Ltd. (FSNL), marking a significant milestone in the privatization process. This agreement comes after the Indian government approved the sale to the Japanese corporation for Rs 320 crore, exceeding the reserve price of Rs 262 crore set by the government based on valuation assessments.

The announcement was made by the Secretary of the Department of Investment and Public Asset Management (DIPAM) on X, indicating that the transaction is now moving toward its final stages. FSNL operates as a 100% subsidiary of MSTC Ltd. under the Steel Ministry and has garnered attention for its specialized services in scrap recovery and processing within the steel industry.

The strategic sale attracted two financially qualified bids, with Konoike Transport's offer being the higher of the two, while the other bid was submitted by Indic Geo Resources Pvt Ltd., a subsidiary of Chandan Steel Ltd.

Konoike Transport Co. Ltd. is a well-established Japanese corporation listed on the Tokyo Stock Exchange, boasting over 140 years of experience in steelworks operations. Their Steel Division provides a comprehensive range of services, from raw material processing to recycling industrial waste without generating secondary waste, thus promoting sustainability in steel production.

FSNL, incorporated on March 28, 1979, specializes in providing steel mill services, focusing on the recovery and processing of scrap generated during iron and steel manufacturing across various plants. The disinvestment is expected to enhance the operational efficiency and growth prospects of FSNL under Konoike's expertise.