No decision yet on follow-on offer, says SAIL
India's largest steel maker, Steel Authority of India, said there is no final decision on when its Rs 16,000 crore follow-on public offer (FPO) would hit the markets, almost a year after the issue was first expected to hit the bourses. Sumant Banerji reports. Not the right timebusiness Updated: Sep 26, 2011 22:33 IST
India's largest steel maker, Steel Authority of India, said there is no final decision on when its Rs 16,000 crore follow-on public offer (FPO) would hit the markets, almost a year after the issue was first expected to hit the bourses.
The 'Maharatna' firm, said the share sale has not been cancelled per say but so long as the markets remain choppy, it is not a topic for discussion.
"We will discuss it only when the markets stabilise," said CS Verma, chairman, SAIL. "Everybody is on one ground that it does not serve any purpose to sell shares in this market. In anycase we do not need any capital from the share sale for our immediate expansion projects and hence there is no hurry."
The company has already received a go ahead for the divestment of equity in two tranches of 10% each last year though which capital to the tune of Rs 16,000 crore is expected to be raised.
"Cumulative orders worth Rs 54,000 crore has been placed under the ongoing modernisation and expansion to increase production capacity to 23.5 million tonne by 2012-13," Verma said. "We spent Rs 11,280 crore last year and this year we intend to spend over Rs 14,000 crore."
SAIL also refused to give any deadline to its joint venture with Korea's POSCO though it said that a detailed project report (DPR) for the same is ready and awaiting approval from the board.
"Discussions with POSCO to finalise the terms and conditions of the joint venture are on," he said. "The DPR is ready but it has not been accepted yet."
The SAIL-Posco JV will set up a 3 million tonne per annum steel plant near the PSU's existing plant in Bokaro using POSCO's famous FINEX technology that can utilise iron ore fines.