Rashtriya Ispat Nigam (RINL), a Navaratna company, has filed the draft red herring prospectus with the market regulator - Securities Exchange Board of India. The company had got approval from Cabinet Committee on Economic Affairs (CCEA) to dilute 10% stake (488,984,620 Equity Shares) held by government and raise around Rs 2,500 crore. The entire issue proceeds will be credited to the selling shareholder (government).
The merchant bankers to the issue are UBS Securities, Deutsche Bank and Karvy Computershare is the registrar to the issue. The issue is likely to hit capital market on July 03 and will be end on July 06.
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 original liquid steel production capacity is 3.0 mtpa and expanded liquid steel production capacity is 6.3 mtpa, which is in the advanced stages of completion by the Financial Year 2013. 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.
The existing shareholders of RINL has also approved stock split in the ratio of 1:100 of the company last month. SAIL, Oil India, Hindustan Copper and Hindustan Aeronautics are the other public sector units queued up for disinvestment in 2012-13.
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