Road shows for SAIL FPO delayed
SAIL has called off its road shows for its upcoming follow-on public offer (FPO) planned for June. Its board met on Monday and raised their concerns on the fate of the Rs. 40bn issue of the public sector steel giant.
Analysts are expecting that volatile market conditions and differences between government and merchant bankers over pricing cab be few reasons for the delay in road shows.
The board has approved the red herring prospectus (RHP) for the FPO but could not decide the timing of the offer.
SAIL Chairman C. S. Verma told reporters in New Delhi yesterday that as decided FPO will happen in June but still it will depend upon the market conditions.
Disinvestment secretary Sumit Bose said that the follow-on offer of oil major Oil and Natural Gas Corp was on track and would come in July, as planned. The company hesitates to launch its share sales in the volatile market and hence it delayed its road shows.
