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Journalism of Courage
State-run Steel Authority of India Limiteds (SAIL) follow-on Public Offer (FPO) may hit the market within three months,its chairman C S Verma said on Thursday.
As per the FPO blueprint,The government has planned to offload 10 per cent in the company,while SAIL would issue fresh shares amounting to 10 per cent of its existing share capital in two discrete tranches. Each tranche will consist of 5 per cent (i.e. 20.65 crore shares) of FPO and 5 per cent of disinvestment of governments shareholding in SAIL.
The Centre currently held nearly 86 per cent stake in the PSU. We are planning to go for the FPO by early December as it will be winter vacation thereafter. In case we miss the deadline,then well try to bring it by January or early February, Verma said after emerging from the companys Annual General Meeting here. The government expected to mobilise nearly Rs 40,000 crore through disinvestments of different PSUs this fiscal.
As against the capital of expenditure of Rs 10,606 crore last year,the maharatna has planned a capex of Rs 12,254 crore for various modernisation and expansion schemes,Verma said and pointed out that SAIL hoped to increase
its July-September quarter sales volume to more than 3 million tonnes.
The concerns of the domestic steel industry on cheaper steel imports,mainly from China has eased to a considerable extent with imports receding to 2 milion tonnes in August as against 4.3 MT in July.
