As part of its aggressive divestment agenda, the government is planning to raise about Rs.16,000 Cr via a follow-on public offer (FPO) in state-owned steel major SAIL. The FPO is expected to take place in the fourth quarter of the fiscal year.
The government will divest 10% in SAIL — from the current holding of 68% — and at the same time also issue fresh equity of up to 10%, sale proceeds of which would be used by SAIL for capital expenditure and acquisitions. The FPO is expected to get Cabinet approval by December 2009.
Among other FPOs, last month, the Ministry of Power approved Rural Electrification Corporation's FPO, which will divest 20% including 15% fresh equity and 5% government stake dilution.
SAIL may show good momentum in near term. So one can pick it up for the near term & also look out for trading opportunities.
The government will divest 10% in SAIL — from the current holding of 68% — and at the same time also issue fresh equity of up to 10%, sale proceeds of which would be used by SAIL for capital expenditure and acquisitions. The FPO is expected to get Cabinet approval by December 2009.
Among other FPOs, last month, the Ministry of Power approved Rural Electrification Corporation's FPO, which will divest 20% including 15% fresh equity and 5% government stake dilution.
SAIL may show good momentum in near term. So one can pick it up for the near term & also look out for trading opportunities.
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