The initial public offering of state-run Rashtriya Ispat Nigam (RINL) has been postponed for the third time now. The IPO was scheduled to open on October 15.
Giving its reasoning for the deferral, the steel ministry said, "We will not sell RINL below book value". Currently, the book value of the PSU firm is pegged at Rs 22.52 a share.
Sources close to the development said merchant bankers UBS Securities and Deutsche Equities (India) have proposed Rs 15-17 as the price band.
The government was supposed to come out with the price band for the IPO today. However, in a statement to the media, it said press conference for the announcement has been postponed due to “unavoidable circumstances”.
The 48.9 crore shares IPO was scheduled to open for subscription during October 15-18 and was supposed to be listed on November 1.
The government plans to sell 10 per cent of its stake. The issue was previously deferred twice since the filing of the draft prospectus with market regulator Sebi on May 18 due to reasons as varied as volatile market conditions and fire at the company's Vizag steel-making facility.
RINL is the second largest state-owned steel maker in the country producing three million tonnes per annum (mtpa) at its lone facility at Visakhapatnam. The capacity is being raised to 6.3 mtpa in the current fiscal.
The company has to bring out IPO before November to retain its Navratna status. RINL got the status in November, 2010, subject to its getting listed in two years from the date of acquiring the status.
The Cabinet Committee on Economic Affairs in January had approved disinvestment of 10 per cent of government's stake in the firm
The government is expecting to raise Rs 1200 crore, much below the earlier assumption of Rs 2500 crore via IPO.
Giving its reasoning for the deferral, the steel ministry said, "We will not sell RINL below book value". Currently, the book value of the PSU firm is pegged at Rs 22.52 a share.
Sources close to the development said merchant bankers UBS Securities and Deutsche Equities (India) have proposed Rs 15-17 as the price band.
The government was supposed to come out with the price band for the IPO today. However, in a statement to the media, it said press conference for the announcement has been postponed due to “unavoidable circumstances”.
The 48.9 crore shares IPO was scheduled to open for subscription during October 15-18 and was supposed to be listed on November 1.
The government plans to sell 10 per cent of its stake. The issue was previously deferred twice since the filing of the draft prospectus with market regulator Sebi on May 18 due to reasons as varied as volatile market conditions and fire at the company's Vizag steel-making facility.
RINL is the second largest state-owned steel maker in the country producing three million tonnes per annum (mtpa) at its lone facility at Visakhapatnam. The capacity is being raised to 6.3 mtpa in the current fiscal.
The company has to bring out IPO before November to retain its Navratna status. RINL got the status in November, 2010, subject to its getting listed in two years from the date of acquiring the status.
The Cabinet Committee on Economic Affairs in January had approved disinvestment of 10 per cent of government's stake in the firm
The government is expecting to raise Rs 1200 crore, much below the earlier assumption of Rs 2500 crore via IPO.
No comments:
Post a Comment