There has been a buzz in the market on the government talking about divesting 10% stake in the Steel Authority of India via a follow on public offer.
However Mr PK Rastogi steel secretary said that no final call on SAIL FPO has yet been taken. He said that “SAIL divestment is not an option that is being discussed. Further he says the government is looking at fund raising for SAIL and not divestment.
Mr PK Rastogi in an exclusive interview with on CNBC-TV18 said that “We cannot say at this stage. We are discussing various issues. Basically we require money for the SAIL expansion program so various options are being looked into. But one cannot say that we are looking at 10% divestment or FPO for SAIL.”
When asked about If you indeed do go ahead with it, would it be an offer of sale from the government for the government to raise money or will it be a capital raising exercise where SAIL actually raises the money, he said that “At this stage various options are being worked but divestment is not being discussed. What is being discussed is raising money for the expansion plan of SAIL and that basically to go for public through debentures or raising loan and then various other options like FPO etc but these are all under discussion at this stage.”
(Sourced from www.steelguru.com)
Tuesday, September 1, 2009
No final call on SAIL FPO - Mr Rastogi
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