SAIL's Rs8,000 crore FPO likely in June

The much awaited Rs8,000 crore follow-on-public offer (FPO) of Steel Authority of India (SAIL) is likely to hit the capital market in June, a top government official said here today.
   
"SAIL's FPO is the first issue to have got fast track tag from SEBI, where the government has to only inform the market regulator about it after filing the RHP directly with the Registrar of Companies(ROC)," sources in Department of Disinvestment told PTI.
   
"A select few issues get fast track status from the market regulator on qualifying certain criteria of SEBI's Issue of Capital and Disclosure Regulation (ICDR) guidelines," he said.
   
"The RHP of SAIL is likely to be filed by May end or early June. Since we have liberty to announce the issue date in the RHP itself, so it can hit the markets within 15 days of filing of papers with ROC," sources said.
   
The government presently holds 85.8% stake in SAIL, and it plans to divest 5% of its stake through this FPO, another 5% would be fresh equity sale, sources said.
   
Post-FPO the government's stakeholding in SAIL is expected to come down to over 76%.