Govt to kick off divestment FY13 with RINL IPO, likely to be launched on July 03

Kicking off government’s Rs 30,000 crore divestment programme, the initial public offering (IPO) of Rashtriya Ispat Nigam (RINL) is likely to be launched on July 03, 2012. The government is expected to dilute its 10% stake in the steel major to raise Rs 2,500 crore. The issue is likely to hit capital market on July 03 and will end on July 06.

The draft red herring prospectus will be submitted to the market regulator SEBI by May 17, 2012. The merchant bankers to the issue are UBS Securities, Deutsche Bank, Edelweiss Capital and IDBI Capital. The company has got divestment approval from Cabinet Committee on Economic Affairs in January.

The navratna company increased its production capacity to 6.3 million tonnes per annum (MTPA) from its earlier capacity of 2.9 MTPA with an investment of Rs 12,500 crore. The existing shareholders of RINL had 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.