The Rs.2,500-crore initial public issue or IPO of the Rashtriya Ispat Nigam or RINL may hit the capital market on October 16 and will remain open for subscription till October 18.
The IPO, which would mark the kick-off the government's disinvestment process for the current fiscal, was earlier deferred twice since the filing of the draft documents with the market regulator Securities and Exchange Board of India or (SEBI) on May 18. The deferment was due to volatile market conditions and fire at its Vizag steel unit.
The government plans to raise Rs.30,000 crore through divestments during the current fiscal year.
"The RINL IPO will hit the market on October 16 and close on October 18. The listing of the shares in the bourses will be done on October 31. The IPO is to raise Rs 2,500 crore," a source close to the development reportedly said.
RINL has been asked by the Department of Disinvestment (DoD) to submit the Red Herring Prospectus (RHP) with the market regulator on September 24.
The issue price would be finalized at a meeting of the Empowered Group of Ministers (EGoM), likely on October 8, and be made public the next day.
The Cabinet Committee on Economic Affairs in January had approved disinvestment of ten percent of government's 100 percent stake in the firm.
by RTT Staff Writer
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