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RINL to kick off overseas roadshows for IPO on June 21

Govt to offload 10% stake in public offering slated to hit market on July 3

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Press Trust of India New Delhi
Last Updated : Jan 20 2013 | 3:44 AM IST

Rashtriya Ispat Nigam (RINL) will kick off overseas roadshows starting with New York on June 21 to woo investors for initial public offering (IPO), expected to hit market on July 3.

Sources close to the development said the management of the state-run steel maker along with the representatives of Department of Disinvestment (DoD) and Ministry of Steel would visit six cities abroad -- New York, Boston, Los Angeles, Hong Kong, Singapore and London for inviting investors.

RINL Chairman and Managing Director A P Choudhary will lead the delegation that would hold roadshows in all the three US cities. Its Finance Director P Madhusudan will be there in Singapore, Hong Kong and London to hard-sell the company among the investors' community.

There would be three domestic roadshows -- two in Mumbai and one in Chennai.

Government proposes to sell 10% of its stake in the Vizag-based firm through the IPO as part of its Rs 30,000 crore disinvestment programme for the current fiscal.

RINL has already submitted draft red herring prospectus with market regulator Sebi for the IPO.

"The objects of the offer are to carry out disinvestment of 488,984,620 equity shares by the selling shareholder and to achieve the benefits of listing the equity shares on the stock exchanges," RINL said in the DRHP.

The issue price would be determined through the book building route. It would offer up to five% discount to retail investors and employees.

RINL is the second largest state-owned steel maker in the country producing three million tonnes per annum at its lone facility at Visakhapatnam. The Capacity is being raised to 6.3 million tonnes in the current fiscal.

UBS Securities India and Deutsche Equities (India) are the book running lead managers to the issue while Karvy Computershare would act as the registrar.

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First Published: May 31 2012 | 2:55 PM IST

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