Govt mulls public offer for SAIL
The government is considering the proposed public offer of state-owned SAIL, proceeds of which will be used to part fund the steel giant’s Rs 70,000 crore expansion project.
By PTI |
NEW DELHI: The government is considering the proposed public offer of state-owned SAIL, proceeds of which will be used to part fund the steel giant���s Rs 70,000 crore expansion project. ���The matter of Follow-on Public Offer (FPO) is under the consideration of the ministry of steel,��� an official familiar with the matter said. The steel maker is looking to come out with the public offer soon but is awaiting clearances from the ministry.
SAIL chairman Sushil Kumar Roongta had recently said the company was looking to issue additional equity in the market. Earlier this month, steel secretary P K Rastogi had said the ministry was discussing the matter of raising funds with the SAIL authorities either by way of borrowings or FPO. FPO is a way of raising funds by offering additional shares after a firm has had an initial public offering (IPO).
The government currently owns 85.82% stake, while 4.59% is with the LIC and the rest is with the public.
SAIL chairman Sushil Kumar Roongta had recently said the company was looking to issue additional equity in the market. Earlier this month, steel secretary P K Rastogi had said the ministry was discussing the matter of raising funds with the SAIL authorities either by way of borrowings or FPO. FPO is a way of raising funds by offering additional shares after a firm has had an initial public offering (IPO).
The government currently owns 85.82% stake, while 4.59% is with the LIC and the rest is with the public.
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