State-owned Rashtriya Ispat Nigam Ltd. or RINL, may file the draft prospectus with the market regulator Securities Exchange Board of India or SEBI for its upcoming initial public offer or IPO by June, reports said, quoting Chairman A.P. Choudhary.
The share sale, in which ten percent stake will be sold by the government, is part of Rs.30,000 crore revenue generation through disinvestment of equities in the state-owned public sector firms for the current fiscal.
Last year, the government, which owns 100 percent stake in the company, had approved disinvestment of ten percent of its holdings through an IPO.
Stating that the current focus of the company is to complete the ongoing expansion, he said that the company has time till November to come up with the IPO to fulfill the guidelines of being a Navratna firm.
The Vizag-based steel maker was granted Navratna status on November 16, 2010, subject to the condition that it would list its shares in two years from the date of acquiring the status.
Due to volatile market conditions, the company had put off its earlier plans to come up with the stake sale in January-February. Besides, it was also looking to increase its valuation before hitting the markets as the state-owned steel maker will be adding new capacities later this month.
Post commissioning of the new units, RINL will have an installed steel making capacity of 6.3 million tonnes.
The company has appointed four merchant bankers - UBS Securities, Deutsche Bank, Edelweiss Capital and IDBI Capital - as the book running lead managers to manage its issue.
by RTT Staff Writer
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