January 28, 2011 / 10:20 IST
After the big bang initial public offer of Coal India, the government had been looking to firm up plans to launch its next big IPO in the form of Rashtriya Ispat Nigam. However, that plan now seems to have hit a roadblock and the IPO is now likely only in FY13, sources in the government told CNBC-TV18.
Rashtriya Ispat Nigam will undergo capital restructuring before its IPO. The company has paid up equity capital of Rs 8000 crore and could consider converting part of its equity into debt. The public sector company, which was recently awarded Navratna status on the condition that it will list within the next years, will appoint merchant bankers for restructuring shortly.Recently, Coal India, India's biggest IPO, saw a huge response from investors across categories. The company has raised more than Rs 15,000 crore through the issue.Disinvestment Secretary Sumit Bose had last year told CNBC-TV18 that Rashtriya Ispat Nigam will be the next big public sector IPO. Bose had expressed confidence that the IPO might close in the next fiscal i.e. in FY12.Bose had said that the government will achieve the Rs 40,000 crore divestment target that it has set for itself in FY11.
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