Comments
Preparation of a draft prospectus for the initial public offering of Rashtriya Ispat Nigam Ltd (RINL) is underway, Parliament was informed today.
“The Department of Disinvestment has appointed intermediaries to the IPO and the company has appointed auditors to the IPO. The intermediaries have started the process of due diligence and preparation of draft offer documents,” Steel Minister, Mr Beni Prasad Verma, said in a written reply to the Lok Sabha.
The Government has approved disinvestment of 10 per cent of its holding in RINL through an IPO. It holds 100 per cent stake in RINL.
The share sale will not only help the Government mop up a sizeable chunk of its Rs 30,000-crore disinvestment target for the current fiscal, it will also help the company retain its Navratna status provided it is done before mid-November this year.
RINL was granted Navratna status on November 16, 2010, subject to the condition that it would list its shares in two years from the date of acquiring the status.
“Navratna status would stand automatically withdrawn in case the company is not listed within the prescribed time period,” Mr Verma said.
RINL has a 3.6-million-tonne steel-making capacity now at its lone facility at Vizag in Andhra Pradesh. It is in the final stages of completion of its Rs 12,000-crore capacity expansion programme. Post-expansion, RINL’s capacity will go up to 6.3 million tonnes per annum.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.