State-owned Steel Authority of India Ltd (SAIL) has said the process of its follow-on public offer (FPO) has begun and the issue would be appropriately timed according to market conditions.
“We have appointed six book-running lead managers as well as the domestic and international legal advisors for the issue,” Chairman C S Verma said. The board sub-committee on the FPO has also appointed Crawford Bayley as domestic legal counsel in consortium with Dorsey and Whitney LLP as the international legal counsel. At present, the government holds a stake of a little over 85 per cent in SAIL and after the FPO, its equity in the company is likely to go down to about 69 per cent.
SAIL wanted to part-fund its ongoing Rs 70,000-crore expansion programme with the proceeds from the share sale. The dilution will help the government attain its disinvestment target for this 2010-11.
Turning to SAIL’s collaboration with the Railways, Verma said both organisations were in close talks for expanding their business relations. While mentioning that SAIL had recently entered into a joint venture with RITES for setting up a wagon manufacturing factory at Kulti in West Bengal, Verma said the company was open to more such collaborations.
