RINL public issue to hit markets in a fortnight: Disinvestment Secy

The government plans to launch Rashtriya Ispat Nigam’s (RINL) initial public offering (IPO) within a fortnight, a senior official said on Wednesday.

“The RINL would hit the Street on the second or the third week of July,” said Mohammad Haleem Khan, secretary, Department of Disinvestment. RINL would be the first to tap the capital market this financial year. The government plans to mop up Rs 2,500 crore by divesting stake in the company.

The IPO of the state-owned steelmaker was earlier scheduled to hit the market in June.

Last week, Khan had said the disinvestment department would go ahead with the stake sale of public sector companies, without waiting for the stock market to improve further. “If we have to achieve the target of Rs 30,000 crore this financial year, we cannot wait for the market to improve beyond a point. I think the market has bottomed out,” he had said.

Last month, the RINL management had written to the steel ministry, requesting it to defer the IPO, as the morale of employees had touched a low after a fire broke out at the company's plant in Visakhapatnam plant, killing 19 people, including 12 employees. The merchant bankers for the issue, and Deutsche Equities (India), had also advised the department to defer the issue till September-October, owing to the Visakhapatnam disaster.

RINL had given the draft red herring prospectus for the IPO to the Securities and Exchange Board of India on May 18. In January, the Cabinet Committee on Economic Affairs had approved the disinvestment of 10 per cent of the government's stake in the company.

If the RINL IPO doesn’t hit the market before November, its Navratna status would be at stake. The status, accorded on November 16 2010, is subject to the company being listed in two years from the date of acquiring the status.

image
Business Standard
177 22
Business Standard

RINL public issue to hit markets in a fortnight: Disinvestment Secy

Press Trust Of India  |  New Delhi 



The government plans to launch Rashtriya Ispat Nigam’s (RINL) initial public offering (IPO) within a fortnight, a senior official said on Wednesday.

“The RINL would hit the Street on the second or the third week of July,” said Mohammad Haleem Khan, secretary, Department of Disinvestment. RINL would be the first to tap the capital market this financial year. The government plans to mop up Rs 2,500 crore by divesting stake in the company.

The IPO of the state-owned steelmaker was earlier scheduled to hit the market in June.

Last week, Khan had said the disinvestment department would go ahead with the stake sale of public sector companies, without waiting for the stock market to improve further. “If we have to achieve the target of Rs 30,000 crore this financial year, we cannot wait for the market to improve beyond a point. I think the market has bottomed out,” he had said.

Last month, the RINL management had written to the steel ministry, requesting it to defer the IPO, as the morale of employees had touched a low after a fire broke out at the company's plant in Visakhapatnam plant, killing 19 people, including 12 employees. The merchant bankers for the issue, and Deutsche Equities (India), had also advised the department to defer the issue till September-October, owing to the Visakhapatnam disaster.

RINL had given the draft red herring prospectus for the IPO to the Securities and Exchange Board of India on May 18. In January, the Cabinet Committee on Economic Affairs had approved the disinvestment of 10 per cent of the government's stake in the company.

If the RINL IPO doesn’t hit the market before November, its Navratna status would be at stake. The status, accorded on November 16 2010, is subject to the company being listed in two years from the date of acquiring the status.

RECOMMENDED FOR YOU

RINL public issue to hit markets in a fortnight: Disinvestment Secy

The government plans to launch Rashtriya Ispat Nigam’s (RINL) initial public offering (IPO) within a fortnight, a senior official said on Wednesday.

The government plans to launch Rashtriya Ispat Nigam’s (RINL) initial public offering (IPO) within a fortnight, a senior official said on Wednesday.

“The RINL would hit the Street on the second or the third week of July,” said Mohammad Haleem Khan, secretary, Department of Disinvestment. RINL would be the first to tap the capital market this financial year. The government plans to mop up Rs 2,500 crore by divesting stake in the company.

The IPO of the state-owned steelmaker was earlier scheduled to hit the market in June.

Last week, Khan had said the disinvestment department would go ahead with the stake sale of public sector companies, without waiting for the stock market to improve further. “If we have to achieve the target of Rs 30,000 crore this financial year, we cannot wait for the market to improve beyond a point. I think the market has bottomed out,” he had said.

Last month, the RINL management had written to the steel ministry, requesting it to defer the IPO, as the morale of employees had touched a low after a fire broke out at the company's plant in Visakhapatnam plant, killing 19 people, including 12 employees. The merchant bankers for the issue, and Deutsche Equities (India), had also advised the department to defer the issue till September-October, owing to the Visakhapatnam disaster.

RINL had given the draft red herring prospectus for the IPO to the Securities and Exchange Board of India on May 18. In January, the Cabinet Committee on Economic Affairs had approved the disinvestment of 10 per cent of the government's stake in the company.

If the RINL IPO doesn’t hit the market before November, its Navratna status would be at stake. The status, accorded on November 16 2010, is subject to the company being listed in two years from the date of acquiring the status.

image
Business Standard
177 22

LIVE MARKET

BSE

  ( %)

NSE

  ( %)

More News

STOCK WATCH

Company Price() Chg(%)
Biocon 808.70 15.28
Motil.Oswal.Fin. 483.85 15.24
JM Financial 63.85 12.61
Bharat Financial 844.90 10.58
Force Motors 3220.15 7.47
> More on BSE Gainers
Company Price() Chg(%)
Biocon 809.70 15.57
Motil.Oswal.Fin. 484.90 15.37
JM Financial 63.75 12.43
Bharat Financial 843.60 10.46
Cairn India 191.90 8.51
> More on NSE Gainers
Company Price() Chg(%)
G N F C 158.35 -7.53
Raymond 457.65 -6.60
Canara Bank 240.90 -4.21
Atul 2092.45 -3.70
Hatsun AgroProd. 332.95 -3.38
> More on BSE Gainers
Company Price() Chg(%)
Raymond 458.45 -6.28
Canara Bank 241.30 -3.79
Atul 2093.10 -3.57
Union Bank (I) 126.45 -3.44
Minda Corp 118.65 -3.02
> More on NSE Gainers
Widgets Magazine
Widgets Magazine
Widgets Magazine

Derivatives

Index
Instrument Type
Expiry Date
Option Type
Strike Price

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard