State-owned SAIL’s 20 per cent share sale plan, which aims to generate up to Rs 16,000 crore, may not happen this year due to certain regulatory hurdles.
“SAIL share sale may not come in (calender year) 2010 as it (SAIL) is still not Sebi-compliant for the follow-on public offer (FPO). It has to appoint independent directors on its board, a proposal for which is with the Appointments Committee of the Cabinet (ACC). But, the FPO may come during the January-March period,” a top government official told PTI.
Earlier this month, Steel Secretary Atul Chaturvedi had expressed hope that the FPO could hit the market by October-November.
The country’s largest steel maker has 12 official directors on board, besides two independent directors. The company would have to hire at least 10 more independent directors to become Sebi compliant.
However, the company has proposed to trim the total board strength to 18 — consisting of nine officials and an equal number of independent directors.
Chaturvedi had said he was hopeful of getting clearance for restructuring the SAIL board from ACC by this month. However, the official said ACC has not cleared the proposal yet.
