New Delhi: Rashtriya Ispat Nigam Ltd (RINL) has filed a draft prospectus with market regulator SEBI for an initial public offer (IPO) through which the government will sell 10 percent of its stake in the company.
The government will offload 48,89,84,620 shares through an offer for sale, of which 35 percent will be reserved for retail investors and 50 percent for qualified institutional buyers.
Sources said the IPO would hit the markets by early January as the entire book building process takes about three months time.
A discount of up to 5 percent on the Offer Price shall be offered to retail investors UBS Securities and Deutsche Equities will act as merchant bankers for the issue, the price band of which would be decided later.
As per the Draft Red Herring Prospectus (DRHP) filed with SEBI, the entire issue proceeds would go the government exchequer.
The IPO of state-owned steel maker RINL is scheduled to hit the markets in the current fiscal, and the Cabinet has already accorded its approval for the stake sale.
The government proposes to raise Rs 43,425 crore through disinvestment in PSUs. It has identified SAIL, ONGC, NHPC, Coal India as a stake sale candidate in the current fiscal.
