RINL IPO to be delayed further following fire incident

RINL management has approached the Steel Ministry to defer the IPO.

The initial public offer of the state-owned steel maker was to hit the market in the last week of July.

The merchant bankers to the issue have also advised the government for postponing the IPO till September-October in the wake of the disaster on June 13. As many as 12 staff members, including senoir managers, were among those who lost their lives in the incident.

"Any attempt to launch it before September-October could backfire as the management is sure to face a lot of unpleasant questions during roadshows which would be necessary to promote the IPO," a source said.

Senior officials of the steel ministry and the Department of Disinvestment (DoD) reviewed the situation yesterday, the source said.

Representatives of merchant bankers UBS Securities India and Deutsche Equities (India) were also present at the meeting.

The IPO schedule had already been delayed once by three weeks from the original plan of July 3 in view of weak stock markets.

The government wants to mop up Rs 30,000 crore through stake sale in PSEs during the current fiscal.

On June 13, a major explosion during the trial of a new oxygen control unit near the Steel Melting Shop of the company and the resultant fire led to killing of 19 persons. The Unions are planning a two-day strike at the plant from the end of the month.