October 08, 2012 / 19:55 IST
Finally the government kicked off its Rs 30,000 crore divestment programme with the Rashtriya Ispat Nigam (RINL) IPO of 48,89,84,620 equity shares - a first public issue from the government in FY13 - that scheduled to be opened on Monday, October 15, 2012.
The offer comprises a net offer to public of 44 crore equity shares and a reservation of 4.9 crore shares for subscription by eligible employees. It is the second largest government owned steel company in India (Source: Steelworld, June 2011 newsletter), with original liquid steel production capacity of 3.0 mtpa and expanded liquid steel production capacity of 6.3 mtpa, which is in the advanced stages of completion by the financial year 2013, said the company in its red herring prospectus.The issue will close on October 17 for qualified institutional buyers while the last day for other investors will be October 18.Earlier the Rs 2,500-crore IPO of RINL had been deferred twice since the filing of the draft documents with the market regulator Sebi on May 18.Retail investors and eligible employees will get shares at a 5 percent discount to final issue price.The objects of the offer are to carry out the disinvestment of 48.9 crore equity shares by the selling shareholder, so the all proceeds will go to the government of India. Post issue the government's stake will be reduced from 100 percent to 90 percent.UBS Securities India Private Limited and Deutsche Equities (India) Private Limited are the book running lead managers to the issue.The Department of Disinvestment (DoD), the nodal point for conducting PSU stake sale, has already got Cabinet approval for stake sale in seven companies, including RINL, Hindustan Copper, Oil India, MMTC, NALCO. The government plans to raise Rs 30,000 crore through disinvestments in 2012-13.(With inputs from PTI) Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
