SAIL FPO expected to hit the market soon

SAIL FPO expected to hit the market soonThere are indications that a Follow-on Public Offer (FPO) of the Steel Authority of India Limited (SAIL) will be launched in the market this financial year as steel ministry and the department of disinvestment (DoD) seem to have resolved their differences over the matter.

SAIL chairman CS Verma has expressed that the steel ministry and the DoD has reached an agreement on various matters including the valuation of SAIL and the timing of the FPO and thus the FPO, which will be through the offer-for-sale route, will be launched soon.

"In any FPO there are bound to be issues like the timing of the offer in view of the prevalent market conditions and other concerns. After assessing the entire gamut of issues, all matters have been resolved and we are very hopeful of executing the FPO by March," Verma said.

SAIL, which is the largest producer of steel in India, had a cash reserves of Rs 6,415 crore as on March 2012. The union government is considering disinvestment of SAIL and it has announced its decision to sell 10.82 percent. The government will lower its holding to 75 per cent in the company.