Friday, June 08, 2012
Volatile market conditions coerce RINL to defer IPO by 3-weeks
The ups and downs of the capital markets has coerced Rashtriya Ispat Nigam (RINL) to defer its initial public offering (IPO) by another 3-week. The offer was expected to hit the capital market by July 03. RINL was the first target on government’s Rs 30,000 crore divestment programme.
The government is expected to dilute its 10% stake in the steel major to raise Rs 2,500 crore. The draft red herring prospectus has already been submitted to the market regulator by May 17, 2012. The merchant bankers to the issue are UBS Securities, Deutsche Bank, Edelweiss Capital and IDBI Capital. The company has got divestment approval from Cabinet Committee on Economic Affairs in January.
RINL is a government owned steel producer based in Visakhapatnam. The navratna company is the second largest government owned steel company in India. President of India is the Promoter of Company, acting through the Ministry of Steel, GoI.
The navratna company has increased its production capacity to 6.3 million tonnes per annum (MTPA) from its earlier capacity of 2.9 MTPA with an investment of Rs 12,500 crore. The product portfolio consists of steel products, including plain wire rods, rebars, rounds, squares, structurals, billets, blooms and pig iron. The navratna company’s customers are mainly companies in the construction, infrastructure, manufacturing, automobile, general engineering and fabrication sectors. RINL presently exports Angles Beam, Billets, Channel, Pig Iron, Hot Rolled Rebars and Wire Rods.
SAIL, Oil India, Hindustan Copper and Hindustan Aeronautics are the other public sector units queued up for disinvestment in 2012-13.