SAIL follow-on issue to hit market in Feb

Steel Authority of India's (SAIL) follow-on public offering (FPO) will hit the market next month, the Disinvestment Secretary, Mr Sumit Bose, has said.

Under the first phase, SAIL will go in for a fresh issue of 5% of pre-issue paid up capital. This will be along with an offer for sale of 5% of Government equity in the company. The rollout of the two-phase FPO, although approved by the Cabinet Committee on Economic Affairs (CCEA) in April 2010, had been stuck due to board composition issues such as appointment of independent directors. The Centre had in October 2010 approved restructuring of the board of SAIL so as to meet regulatory norms. In all, the CCEA had approved a proposal for issuing additional equity of 10% by the company and divestment of Government equity to the tune of 10% through offer for sale, to be carried out in two phases.