Rashtriya Ispat Nigam (RINL) disinvestment is most likely to be postponed to 2012-13. The company is looking to improve its valuations so that it can collect adequate value of its shares from the public. By the end of this fiscal year the company will be completing its First phase expansion of Steel plant, it has invested rupees 12,500 Cr for its 1st phase.
RINL is a Navratna firm and the government is considering divesting 10 per cent of its stake through Intial public offer (IPO) in January to March quarter of 2010-11.
RINL has a paid up capital of rupees 7,827.32 Cr which consist of rupees 4,889.85 Cr of paid-up equity capital (4,88,98,462 shares of FV of Rs 1000 each). It also has a preference capital of Rs 2,937.47 Cr.The government is considering to disinvest 4889846 shares of FV of Rs 1,000 through the IPO. They have also proposed to split the shares into FV of Rs 10 before the disinvestment to make it more comfortable to the public.
In the fiscal year 2010-11, RINL has posted sales of Rs 11517 Cr. For this fiscal the company is expecting sales of Rs 13600 Cr. The company is zero debt company with pretty healthy cash reserves of rupees 5500 Cr. The company is expecting to improve on the valuation post expansion of their steel plant at Vizag.The company has initiated the process of IPO appointing four merchant bankers – Edelweiss Capital, IDBI Capital, Deutsche Bank and UBS Securities as BRLMs (book running lead managers) to manage its public issue.
“Bell the bull says: Government has planned big ticket issues of ONGC, SAIL, NBCC, BHEL for disinvestment but all the issues has been delayed because of market conditions.”