Government to sell 10 per cent paid-up equity of RINL through IPO
03 September 2011
The government proposes to divest 10 per cent paid-up equity of Rashtriya Ispat Nigam Ltd (RINL), which runs the Visakhapatnam Steel Plant, through an initial public offer (IPO).
The department of disinvestment in the ministry of finance has invited request for proposals (RFPs) from merchant bankers to act as book running lead managers to the issue.
The government is considering divesting 10 per cent paid-up equity capital comprising 48,89,846 shares of face value of Rs1,000 each, out of its shareholding, through an IPO in the domestic market.
RINL has a paid-up capital of Rs7,827.32 crore comprising Rs4.889.85 crore of paid-up equity capital (4,88,98,462 shares of face value of Rs1000 each) and Rs2,937.47 crore of preference capital.
The government holds 100 per cent of the paid-up equity capital of the company.
RINL will also undergo a capital restructuring exercise as the current level of its capital (equity plus preference) base is high compared to its size.