MSTC has signed a share purchase agreement with Konoike Transport Co. Ltd for the strategic disinvestment of Ferro Scrap Nigam Limited (FSNL). Last month, the government approved the privatization of FSNL, awarding the deal to Konoike Transport for ₹320 crore.
The transaction is now in its final stages, as confirmed by DIPAM Secretary in a post on X. FSNL operates as a 100% subsidiary of MSTC Ltd. and falls under the purview of the Steel Ministry. The government received two technically qualified financial bids for FSNL, with Konoike’s bid exceeding the reserve price of ₹262 crore, which had been established based on assessments by the Transaction Adviser and Asset Valuer. The other bid came from Indic Geo Resources Pvt Ltd, a subsidiary of Chandan Steel Ltd.
Konoike Transport Co. Ltd is a diversified Japanese corporation listed on the Tokyo Stock Exchange. Its Steel Division, which has over 140 years of experience, offers extensive services that encompass everything from raw material acceptance to manufacturing, slag treatment, scrap processing, quality inspection, packaging, and distribution of steel products, thereby enhancing customer operations. This division is also involved in innovative recycling projects, including a system that efficiently recycles industrial waste without generating secondary waste.
MSTC Limited, formerly known as Metal Scrap Trade Corporation, is a government-owned company in India specializing in e-commerce, trading, and recycling services. Established in 1964, MSTC initially focused on managing the sale of scrap and surplus materials but has since evolved into a key player in facilitating online auctions and e-commerce services for both government and private sectors.
The company’s diverse offerings include e-auctions, e-procurement, and recycling, which support industries ranging from steel and coal to automobiles and machinery. MSTC is also instrumental in advancing the Indian government’s sustainability efforts through its metal recycling initiatives, aiming to reduce waste and promote circular economy principles. With a reputation for transparency and efficiency, MSTC provides a trusted digital platform for transactions and is a critical component of India’s efforts to modernize and streamline its public and industrial sectors.
