SAIL ASKED TO SUBMIT PROPOSAL ON FPO
By ceoaisra, Section AISRA NEWS
Posted on Fri Oct 09, 2009 at 02:45:47 AM EST
The government has asked the Steel Authority of India Ltd (SAIL) to give a specific proposal for its proposed public offering and the PSU's board would discuss the same at a meeting later this month. Once the specific proposal is submitted it would be taken up with the finance ministry as the government is likely to divest part of its holding at the time of public offer, a senior government official said. The government currently holds 85.82% stake in SAIL. About 4.59 % is with the LIC and the rest is with the public. SAIL has sought the steel ministry's approval for a follow-on-offer (FPO) to part finance its expansion programme. "We considered their (SAIL) proposal and have now asked the company to send us a specific proposal giving all details," the official said. Asked if the government could divest some of its stake, the official said, "The FPO could be a mix of both, issue of fresh equity from the company and offloading of additional government stake."
