The Steel Authority of India Ltd (SAIL), India's second-largest steel company, is in no hurry about its follow-on public offer (FPO), even as it announced today that it has achieved its best-ever July-September quarter sales this year. Its board too has been revamped in anticipation of the FPO, with two new directors.
In an interview with CNBC-TV18 on Thursday, steel secretary P K Misra said the FPO is unlikely to come out in November 2010, as anticipated. ''We are still working out the pricing for the FPO. We need to see the impact of Coal India initial public offering (IPO) on the market,'' he said.
''We have to watch the market. We will take the call a little later because there are a couple of other issues (of government-held companies) that are coming out now, so we have to see how much they mop up and what effect it has on the market. We will have to carefully weigh what dates are best.''
On the restructuring of the board, Misra said, ''Yes, the restructuring of the board has already taken place and we are through with that. There is of course question of appointment of some non-official directors which we are also sorting out. So, we should be in a position, we would be ready. That of course will depend on the market, we will have to talk to the Ministry of Disinvestment as to when is the best time, and of course our bankers.
The government had on Wednesday mandated trimming the state-owned firm's board size to 14 members from 24 at present. The move will help the company to appoint the required number of independent directors to meet regulatory norms ahead of its FPO.
Misra said apart from the market price, a few other issues would have to be taken into account, such as the impact of the mega issue of Coal India Ltd on the market - ''What price realisations accrue, that would be a pointer.''