Public sector steel major Steel Authority of India (SAIL), which expects its much awaited R8,000 crore follow on public offer (FPO) to be launched by May end this year said, the delay in its proposed FPO is not hurting its capex plans as it has sufficient cash available with the company.

The steel major, which targets to expand its capacity to 23.46 million tonnes by FY 2013 from 13.86 million tonnes currently, has lined up capex of about R14,400 crore to be spent in financial year 2011-12 in its ongoing expansion and modernisation plans.

CS Verma, chairman, Sail told FE, ?This financial year (FY2012) we expect our IISCO Burnpur plant to get commissioned, which will add about 3 million tonne capacity in the current financial year and from FY2012-13 onwards, all the remaining schemes of our expansion and modernisation will start getting completed one after another,? he added.

SAIL has lined up expansion at all its plants in Bhilai, Rourkela, Bokaro and Durgapur among others. According to Angel Broking report, SAIL?s cash balance as on December 31, 2010 stood at R13,496 crore and borrowing stood at R14,176 crore, of which long term borrowings were R10,000 crore. Going ahead, analysts estimate the company to end FY 2011 with cash of about R15,000 to R17,000 crore. SAIL had cash of about R22,436 crore as on March 31, 2010.

SAIL shares on Monday slipped 1.97% to close at R167.05 on the Bombay Stock Exchange.

Referring to the company?s delayed FPO, Verma said, ?The company?s FPO programme is not getting abnormally delayed. There were some problems of conflict of interest with the merchant bankers appointment and we had to resolve that problem. The issue has been resolved and hence, we will be filing our red hearing prospectus sometime in May. We hope to achieve our target of launching the issue hopefully by end of May only.?

In September last year, SAIL had hired six bankers to manage its FPO, of which four ? SBI Caps, Kotak Mahindra, Deutsche Bank and HSBC ? were issued showcause notices.

Conflict of interest was alleged since these four bankers had also taken on the task of managing rival Tata Steel?s share sale. JP Morgan and Enam Securities, the other two hired, were not involved with Tata Steel?s FPO.

Meanwhile, the company which witnessed its net profits fall by 33.9% in the third quarter due to rising input cost said it had the best fourth quarter.

Declining to give specifics, Verma said, ?We have done the best fourth quarter among all the quarters. Our last quarter has been the best in terms of production and sales. The operation and financial performance has been the best among all the four quarters of the financial year 2010-11,? he said.