RINL IPO will depend on market conditions: Steel Secretary

The public issue of state-owned steel maker RINL will depend on stock market conditions and is likely to take some more time, Steel Secretary G Mohan Kumar said here today.

     

"RINL IPO will take some time because this is probably not the (best) time now. It needs some more time. There could not be any approximate time, if you have to look at the market situation," Kumar said at an event organised by Ficci.

     

The equities market has been volatile and various experts believe that it may take some time to stabilise. From a 52-week low of 17,448.71 on August 28, the BSE 30-stock index, Sensex, has risen 2,768.68 points or 15.86%. However, from a record high of 21,321.53 on November 3, the index has lost 1,104.14 points or 5.17% as of Friday's closing.

     

Asked whether the Initial Public Offer of the Rashtriya Ispat Nigam Ltd (RINL) will happen before the end of current fiscal (March 31), Kumar said: "I don't know that."

     

The launch of the RINL IPO, through which the government was aiming to mop up Rs 2,500 crore, has been already deferred thrice, following suggestions of merchant bankers in view of subdued market conditions, and a fire accident at Vizag Steel Plant (VSP).

     

It was supposed to hit the market last fiscal.

     

The Vizag-based company is the second largest state-owned steel maker in the country after SAIL, with a production capacity of 3.4 million tonne per annum and is in the process of expanding the capacity to 6.3 million tonne.

    

Kumar said the expansion work is almost over.