State-run Steel Authority of India will likely launch its share sale by June 14, after the board of directors of the steelmaker finalise the draft prospectus early next week, its chairman said.
“We have tentatively scheduled it from June 14 to June 17. The prospectus is yet to be filed, but the board will meet on May 23 to finalise this,” SAIL Chairman C.S. Verma told Reuters over the telephone from New Delhi.
The long delayed issue, expected to raise up to $1.8 billion, is part of the government’s plan to shed stakes in nearly 60 state-run firms over the next few years, to raise funds for its social welfare programmes and to cut its fiscal deficit.The government will sell 5 percent in India’s largest domestic steelmaker, which has an annual capacity of around 15 million tonnes. SAIL will issue new shares equal to 5 percent of its existing share capital, to fund expansions.