SAIL hopes to execute follow-on offer
Talking to The Indian Express, SAIL chairman CS Verma said the perceived differences on the timing of the Follow-on Public Offer (FPO) have been sorted between the steel ministry and the DoD, and the FPO through the offer-for-sale route is back on the track.
“In any FPO there are bound to be issues like the timing of the offer in view of the prevalent market conditions and other concerns. After assessing the entire gamut of issues, all matters have been resolved and we are very hopeful of executing the FPO by March,” Verma said.
The government has decided to offload 10.82 per cent of its equity in SAIL which will lower its holding to 75 per cent. Pursuing its disinvestment agenda, the government hopes to mobilise around Rs 9,000 crore from the PSU which has a net worth of about Rs 39,000 crore.
The government hopes to mop up Rs 40,000 crore through divesting its stake in profitable PSUs but is wary of the fluctuating market conditions, which had held back SAIL’s public offer so far.
He said in the ongoing expansion and modernisation programme, SAIL will expand its production capacity to 18 million tonnes (MT) from the existing 14 MT by the end of current financial year by firing
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