RINL’s IPO likely to hit market on Oct 16, filing of RHP on Sept 24

18 Sep 2012 Evaluate

Rashtriya Ispat Nigam’s (RINL) Rs 2,500-crore initial public offer (IPO) is likely to hit the capital market on October 16 and will remain open for subscription till October 18. The listing of shares in the bourses will be done on October 31. The Department of Disinvestment (DoD) has asked RINL to submit the Red Herring Prospectus (RHP) with the SEBI on September 24. Further, the whole process is expected to be completed before November, to retain the ‘Navaratna’ status of the steel maker.

The issue price would be finalized at the Empowered Group of Ministers (EGoM) meeting, likely on October 8, and will be made public the next day. Earlier the issue was delayed mainly due a major explosion, which took place during the trial of a new oxygen control unit near the steel melting shop at Vizag Steel Plant (VSP), resulting in the fire and the subsequent deaths on June 13. This made the RINL management to demand the Steel Ministry for the deferment of IPO.

With this IPO, the government is planning to start the disinvestment process for the current fiscal. The government is planning to raise Rs 30,000 crore via disinvestments in 2012-13. The Cabinet Committee on Economic Affairs in January had approved disinvestment of 10 per cent of government’s 100 per cent stake in the firm.

Register Now to get our Free Newsletter & much more!

Register