'Red herring prospectus of RINL IPO likely by this month end'
The Red Herring Prospectus or Final Offer Document of the Rashtriya Ispat Nigam Ltd (RINL)’s delayed IPO may be filed by the end of this month, a senior Steel Ministry official said.
Hyderabad: The Red Herring Prospectus or Final Offer Document of the Rashtriya Ispat Nigam Ltd (RINL)’s delayed IPO may be filed by the end of this month, a senior Steel Ministry official said.
The Steel Ministry is in touch with the Department of Disinvestments to ensure that the whole process is completed before November 15 so as to retain the ?Navaratna? status of the steel maker, the official said.
The IPO of the PSU was to hit the market in June.
The launch has already been deferred twice, following suggestions of the merchant bankers in view of subdued market conditions and a fire accident at Vizag Steel Plant (VSP).
"Draft Red Herring Prospectus has already been filed in May. When we were about to file the final offer document that is RHP in July, we were asked to hold on by the DOD.
"As per the indications, we may file RHP by the end of September," the official told reporters.
RINL will be the first PSU to tap the capital market this fiscal.
The government is aiming to mop up Rs 2,500 crore by divesting its stake in the company.
"The whole IPO process will take about six weeks.
"Assuming the process restarts in the fourth week of September, latest by first week of November it will be completed," the official added.
The RINL management wrote a letter to the Steel Ministry on June 22 requesting deferment of the IPO saying employees' morale has touched a low after the fire that killed 19 people including 12 staffers.
On June 13, a major explosion took place during the trial of a new oxygen control unit near the steel melting shop at VSP, resulting in the fire and the subsequent deaths.