SAIL seeks attorney general's opinion on bankers for FPO

Steel Authority of India's follow-on public offering (FPO) largely expected to come about next month has now reached the attorney general's office. The public sector steel company has sought the attorney general's opinion on the issue of merchant bankers handling the FPO. SAIL has also sent related documents to the finance ministry. The finance ministry will now take a final call on the FPO.

However, the timing of the FPO will now rest on merchant bankers' fate. Four merchant bankers including SBI Caps, Kotak Mahindra, Deutsche Bank and HSBC were involved with the Tata Steel FPO as well as that of SAIL. The bankers were hired in September of last year, even before Tata Steel had firmed up its FPO plans.

SAIL's Chairman CS Verma told CNBC-TV18 that the FPO will happen this fiscal and that a final call on the FPO will be taken in a day or two.