SAIL plans for IPO this year to raise Rs 3,000 crore

Submitted by Prema Kher on Fri, 07/31/2009 - 11:28

sailSteel Authority of India Limited (SAIL), a public sector steel company, may float another Initial Public Offer (IPO) this year to generate funds worth Rs 3,000 crore. The recession-hit steel giant has witnessed a fall in steel sales given to low demand across the steel sector, due to global slowdown.

Now, as the market has been showing signs of recovery, the biggest state-run steel company of India wants to avail the opportunity and carry out its expansions plans, using the funds raised through public offer. The board of the company will meet soon to get the necessary approvals for the proposal from the Union Steel Ministry.

SAIL Chairman, S K Roongta, said: "All options are open before the company. Whatever needs to be done on raising equity, will be taken up during the current fiscal year." However, he declined to divulge the actual size of offer that will reduce government's holdings in the company to below 75 per cent.

Shares of Navaratna Company, listed on BSE and NSE, are trading at Rs 175, enabling it to fetch nearly Rs 3,000 crore. It reported a decline of 27.7% in the consolidated profit to Rs 1326.09 crore in the first quarter of 2009-10.


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