Steel Authority of India is poised to produce 20.23 million tonne (mt) of saleable steel by 2016 up from 12.88 mt in 2014, following completion of its ambitious Rs 70,000 crore expansion and modernization.
This was stated by the company as part of a corporate presentation prepared by it to attract potential investors for its upcoming offer for sale. A six-member team of officials from SAIL, led by chairman C S Verma are now on a roadshow across the US, Europe and Hong Kong. Apart from SAIL officials, joint secretary in the steel ministry, Mr U P Singh was also part of the Indian team during the roadshows.
The presentation says in terms of the market share of finished steel consumption, SAIL had a 14.4% chunk by March 2014, with Tata Steel in second spot with at 12.1% share, followed by JSW Steel with a 9.6% share, as per data from Joint Plant Committee (JPC). The company also cited data from JPC, which maintains the country's only independent steel industry database, to indicate its provisional share of production for sale. While SAIL had a 16.6% share at the end of March 2014, JSW Steel and Tata Steel's share was11.4% and 11.2% respectively.
The government will off-load around 20.65 crore shares which amounts to a 5% stake sale in the company. The stake sale is likely to fetch around Rs 1800 crore, will kickstart the Narendra Modi government's ambitious Rs 43,000 crore disinvestment programme. While the date for the launch of the issue has not been finalised it may happen sometime in the next couple of months.
While a team led by Mr Verma met investors in New York and Boston after a meeting fund managers in London, another team led by SAIL's director (finance), A Chaudhary, has been meeting prospective participants in the OFS in Hong Kong and Singapore.
Source: ET
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