‘SAIL picks JP Morgan,others for share sale’

Steel Authority of India has shortlisted JP Morgan,Deutsche Bank and four others to manage a follow-on share offering that could raise up to $1.7 billion,four sources with direct knowledge of the situation said on Thursday.

Other bankers shortlisted by the largest domestic producer of the alloy are HSBC,SBI Capital,Enam Securities and Kotak Mahindra Capital,said the sources,who refused to be named as they were not authorised to speak to the media.

Officials at SAIL and the shortlisted banks were not immediately available for comment.

The government plans to sell 5 per cent in the company,while SAIL will issue additional shares equal to 5 per cent of its existing share capital. The government owns about 86 per cent in the firm.

A 10 per cent sale in the company would fetch about $1.7 billion. In April,cabinet approved a 20 per cent stake sale in the company in two tranches.