SAIL FPO to hit market by May-end

The much-awaited Rs 8,000 crore follow-on public offer of Steel Authority of India (SAIL) is set to hit the capital market by the end of next month, a source close to the development said.

"The FPO will hit the market by May-end. This is final," the source said on condition of anonymity.

However, attempts to contact SAIL Chairman C S Verma went unanswered.

The FPO of SAIL, in which the government holds a stake of a little over 85%, has failed to meet repeated deadlines since December last year due to unfavourable market conditions and problems with merchant bankers.

The delay in SAIL's FPO thwarted the achievement of the government's divestment target for the previous fiscal. Compared to the target for Rs 40,000 crore fund generation through disinvestment in state-owned firms, the government could only raise more than Rs 22,000 crore.

The government has set a target to raise Rs 40,000 crore through disinvestment in state-run firms in the current fiscal as well.

The expected date for submission of a red herring prospectus to market regulator Securities and Exchange Board of India (Sebi) could not be ascertained, but it is likely to be filed within the first fortnight of next month, the source said.

Verma had on March 16 said that SAIL would file the red herring prospectus (RHP) in May for its forthcoming follow-on public offer. "It may happen sometime in May," he had said when asked about the company's plan to file the RHP.