RINL issue to hit market on Oct 16, remain open for 3 days

The IPO, which aims to raise Rs 2,500 cr, will mark the beginning of the govt's disinvestment process this year

The Rs 2,500-crore initial public issue of state-run Rashtriya Ispat Nigam Ltd (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 of the government's disinvestment process for the current financial year, was earlier deferred twice since the filing of the draft documents with the market regulator Sebi on May 18.

The deferment was due to the volatile 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 said.

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 year.

The source said RINL has been asked by the Department of Disinvestment (DoD) to submit the red herring prospectus (RHP) with the market regulator Securities and Exchange Board of India (Sebi) on September 24.