RINL's IPO not linked to raising resources

The Rashtriya Ispat Nigam Ltd (RINL) proposal for an IPO is not linked to raising resources for its corporate requirements, its CMD said today.
"There is a plan of the government to offload 10 per cent stake. That call has to be taken by the government taking into account market conditions. But we are not, at this point in time, looking for any additional funds," RINL's Chairman cum Managing Director P Madhusudhan said.
RINL has just completed its greenfield expansion that aims to take the hot metal capacity to 6.3 million tonne from 3.6 million tonnes now.
It will also begin modernisation of its existing old plant resulting in capacity going up to 7.3 million tonne or 6.5 million tonne of saleable steel by 2017-18.

"This expansion we have carried out through internal resources. We are comfortably geared at this point in time. Once the cash flow starts flowing in from new expansion project, we are confident of funding our expansion projects through 1:1 debt equity ratio," Madhusudan said on the sidelines of an interactive session with MCC Chamber of Commerce and Industry.
The government in September deferred the initial public offering.