SAIL FPO Likely To Hit Market By May-end Even As It Achieves Success On The Environment Front

摘要

The Rs 8,000-crore follow-on public offer of Steel Authority of India (SAIL) is set to hit the capital market by the end of next month, a source close to the development said. "The FPO will hit the market by May-end. This is final," the source said on condition of anonymity. However, attempts to contact SAIL Chairman, Mr. C. S Verma, went unanswered. The FPO of SAIL, in which the Government holds a stake of a little over 85%, has failed to meet repeated deadlines, due to unfavourable market conditions and problems with merchant bankers. The delay in SAIL's FPO thwarted the achievement of the Governments divestment target for the previous fiscal. Compared to the target of Rs 40,000-crore fund generation through disinvestment in state-owned firms, the Government could only raise more than Rs 22,000 crores. It has set a target to raise Rs 40,000 crores through disinvestment in state-run firms during the current fiscal as well. The expected date for submission of a red herring prospectus to the Securities and Exchange Board of India (SEBI) could not be ascertained, but it is likely to be filed within the first fortnight of next month, the source said.