RINL issue to hit market on Oct 16, remain open for 3 days
The Rs 2,500-crore initial public issue of the state-run Rashtriya Ispat Nigam (RINL) is likely to hit the market on October 16 and will remain open for subscription till October 18.
New Delhi: The Rs 2,500-crore initial public issue of the state-run Rashtriya Ispat Nigam (RINL) is likely to hit the 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 Sebi on May 18.
The deferement was due to voalitle market conditions and fire at its Vizag steel-making facility.
The government plans to raise Rs 30,000 crore through disinvestments in 2012-13.
"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 in the know told PTI.
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 source said RINL has been asked by the Department of Disinvestment (DoD) to submit the Red Herring Prospectus (RHP) with the market regulator SEBI on September 24.
The issue price would be finalised at a meeting of the Empowered Group of Ministers (EGoM), likely on October 8, and be made public the next day.
"The management roadshows would be held from September 27 to October 4," the source said, adding RINL has to bring out IPO before November to retain its Navratna status. RINL got the status on November 16, 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 percent of government's 100 percent stake in the firm.
The RINL IPO was planned to hit the market in June. But, merchant bankers -- UBS Securities India and Deutsche Equities (India) -- asked the company to defer in view of subdued market conditions.
It was later scheduled in July. But, on June 13, a major fire that broke out at its Vizag facility killing 19 people, including 12 staffers, forced the company to sit back and wait for the upliftment of the employees' morale, which touched a low following the incident.