RINL IPO to start PSU disinvestment process this monthhttps://indianexpress.com/article/news-archive/web/rinl-ipo-to-start-psu-disinvestment-process-this-month/

RINL IPO to start PSU disinvestment process this month

The government is set to kick off its ambitious disinvestment programme later this month with the initial public offering in state-owned Rashtriya Ispat Nigam (RINL).

The government is set to kick off its ambitious disinvestment programme later this month with the initial public offering in state-owned Rashtriya Ispat Nigam (RINL).

“We have lined up all the cases for the next six months. The first case (RINL) is coming up sometime this month,” finance minister P Chidambaram said at the Economic Editors’ Conference.

An empowered group of ministers is likely to meet on Tuesday to decide on the date and pricing of the IPO. The government plans to sell 10 per cent of its stake in the public sector steel maker and had taken approval of the Cabinet in January this year.

But volatile market conditions forced the government to twice defer the Rs 2,500-crore initial public offering of RINL since its draft documents were filed with the market regulator Securities and Exchange Board of India (Sebi) on May 18.

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The government has also identified four more public sector firms – NMDC,NTPC,Power Grid Corporation and Engineers India Ltd for stake sales.

“We have floated a paper for inter-ministerial consultation for disinvestment of NMDC,NTPC,EIL and PGCIL and the proposals would soon come up before the Cabinet,” a senior official said.

Chidambaram said that the government has finalised a timeline for stake sales to raise the Budgeted target of Rs 30,000 crore from disinvestment proceeds. “I will be quite happy if I can meet the target and complete the timetable for disinvestment as laid down,” he said.

The department of disinvestment has lined up seven companies for stake sales including RINL and Hindustan Aeronautics Ltd.

To prevent market volatility from affecting its divestment programme further,it is also using the auction route for selling stakes in firms including Hindustan Copper,Oil India,MMTC,Neyveli Lignite Corporation and Nalco. It is also finalising the contours of an exchange traded fund for public sector firms.