The navaratna company Rashtriya Ispat Nigam (RINL) has, in a written communication, requested to the Steel Ministry to defer the initial public offering, which was slated to hit the capital market in last week of July 2012. The PSU has reasoned that employee morale is low following the fire accident at the company's Vizag plant that claimed 19 lives.
The PSU had filed the draft red herring prospectus with the market regulator - Securities Exchange Board of India (SEBI) in May 2012. 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 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 state-owned steel maker’s 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.
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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