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RINL files draft prospectus for IPO-news21052012


State-owned Indian steelmaker Rashtriya Ispat Nigam Ltd ( RINL) has filed a draft prospectus for an initial public offer ( IPO), involving a 10% stake sale by the government.


The company, which is more than doubling its steelmaking capacity to 6.3 million tones (MT) a year, did not disclose the timeline for the IPO or the amount in the draft offer document filed with the Securities and Exchange Board of India ( SEBI).

The price range will be decided by the government at least two days before the offer opens, said the document posted on the regulator's website.

The offering is part of India's plans to raise Rs300 billion ($5.5 billion) through asset sales in state-run companies in the current fiscal year that ends next March.

UBS and Deutsche Bank are the lead managers for the share sale in RINL, which reported a profit of Rs4.96 billion for the nine months to December 2011 on net sales of Rs90.66 billion. ($1=54.5 Indian rupees)
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