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Share sale: SAIL shortlists leads

business Updated: Sep 02, 2010 21:11 IST
Reuters
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Steel Authority of India Ltd (SAIL) has shortlisted Deutsche Bank, JP Morgan and four others to manage a share issue that may raise up to $1.7 billion (R7,990 crore), sources said on Thursday.

Other bankers shortlisted by the largest domestic steel producer include, SBI Capital, Enam Securities and Kotak Mahindra Capital, sources said.

SAIL executives and officers of shortlisted banks were not available for comments.

The government plans to sell 5 per cent in the company, while SAIL will issue new shares equal to 5 per cent of its existing share capital. The government owns about 86 per cent in the firm, which can produce 15 million tonnes of steel a year.

The sale is likely to be launched in January, sources said.

In April, the Cabinet approved a 20 per cent stake sale in the company in two tranches.

Domestic firms have raised more than $14 billion (R65,800 crore) through share sales so far this year, compared with $16 billion (R75,200 crore) in 2009. Total equity offerings in 2010 are expected to reach $30 billion (R141,000 crore).