ET reported that the Indian government has asked the Steel Authority of India Limited to give a specific proposal for its proposed public offering and the PSU's board would discuss the same at a meeting later this month.
The report cited a senior government official as saying that once the specific proposal is submitted it would be taken up with the Finance Ministry as the government is likely to divest part of its holding at the time of public offer.
The official said that "We considered their proposal on FPO and have now asked the company to send us a specific proposal giving all details.”
Asked if the government could divest some of its stake in the company, the official said that "The FPO could be a mix of both, issue of fresh equity from the company and offloading of additional government stake."
Another government official said that "All in all, by undertaking both the measures, government's stake in the company could get reduced by 10%.”
SAIL has sought the steel ministry's approval for a Follow on Offer to part finance its INR 70,000 crore expansion program.
(Sourced from www.steelguru.com)
Sunday, October 4, 2009
SAIL asked to submit specific proposal on FPO - Report
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