The RINL IPO has already been deferred once by three weeks after suggestions of the merchant bankers in view of the subdued market conditions
New Delhi: State-run Rashtriya Ispat Nigam Ltd's (RINL) appeal to defer its Rs2,500 crore initial public offering (IPO) in view of a fire at its plant killing 19 may go unheeded, with the Department of Disinvestment (DoD) deciding to go ahead with the plan to launch the issue towards the end of this month, reports PTI.
"Basically, this is not an issue that is connected with the disinvestment. Its a very unfortunate event," Steel Secretary DRS Chaudhary told reporters when asked about the RINL's plea to defer the IPO in view of the fire accident.
The RINL management wrote a letter to the Steel Ministry on 22nd June requesting deferring the IPO as employees' morale has touched a low after the fire that killed 19 people including 12 staffers.
On 13th June, a major explosion took place during the trial of a new oxygen control unit near the steel melting shop at RINL's Vizag facility, resulting in the fire and the subsequent deaths.
The IPO is scheduled to hit the market in the last week of July. The launch has already been deferred once by three weeks after suggestions of the merchant bankers in view of the subdued market conditions.
Chaudhary said the road shows were currently going on, but the decision on launching the issue would be taken by the Department.
"The decision on when and how to market it will be taken by the DoD. We don't finalise the dates which will be decided by the DoD," he said.
"It's very unfortunate that the accident happened. It's bad luck that it happened. In future, we want to make sure that these things don't happen again," Chaudhary added.
When asked if the Steel Ministry conveyed RINL's plea to the DoD, he said, "All of you have conveyed it in the press".
The merchant bankers to the issue - UBS Securities India and Deutsche Equities (India) - had also advised DoD to defer the issue till September-October in the wake of the disaster.
RINL had submitted the draft red herring prospectus with the market regulator SEBI on 18th May. The company has to bring out its IPO before November this year as its Navratna status, accorded on 16 November 2010, is subject to its getting listed in two years (from the date of acquiring the status).
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The government has fined drug companies billions of dollars for illegally promoting drugs for unapproved uses. Here's a closer look at six of the most recent major fraud fines
On Monday, the Department of Justice announced that drug company GlaxoSmithKline agreed to pay a $3 billion fine, the largest health care fraud fine in the history of the United States. This fine is just the latest in a string of drug company penalties for improper promotion of drugs for "off-label," or unapproved, uses. Here we take a look at six recent multi-million dollar fines that drug companies have agreed to pay for inappropriately, and in some cases illegally, promoting prescription drugs.
Eli Lilly was fined $1.42 billion to resolve a government investigation into the off-label promotion of the anti-psychotic Zyprexa. Zyprexa had been approved for the treatment of certain psychotic disorders, but Lilly admitted to promoting the drug in elderly populations to treat dementia. The government also alleged that Lilly targeted primary care physicians to promote Zyprexa for unapproved uses and "trained its sales force to disregard the law."
Pfizer was fined $2.3 billion, then the largest health care fraud settlement and the largest criminal fine ever imposed in the United States. Pfizer pled guilty to misbranding the painkiller Bextra with "the intent to defraud or mislead", promoting the drug to treat acute pain at dosages the FDA had previously deemed dangerously high. Bextra was pulled from the market in 2005 due to safety concerns. The government alleged that Pfizer also promoted three other drugs illegally: the anti-psychotic Geodon, an antibiotic Zyvox, and the anti-epileptic drug Lyrica.
AstraZeneca was fined $520 million to resolve allegations that it illegally promoted the anti-psychotic drug Seroquel. The drug was approved for treating schizophrenia and later for bipolar mania, but the government alleged that AstraZeneca promoted Seroquel for a variety of unapproved uses, such as aggression, sleeplessness, anxiety, and depression. AstraZeneca denied the charges but agreed to pay the fine to end the investigation.
Merck agreed to pay a fine of $950 million related to the illegal promotion of the painkiller Vioxx, which was withdrawn from the market in 2004 after studies found the drug increased the risk of heart attacks. The company pled guilty to having promoted Vioxx as a treatment for rheumatoid arthritis before it had been approved for that use. The settlement also resolved allegations that Merck made false or misleading statements about the drug's heart safety to increase sales.
Abbott was fined $1.5 billion in connection to the illegal promotion of the anti-psychotic drug Depakote. Abbott admitted to having trained a special sales force to target nursing homes, marketing the drug for the control of aggression and agitation in elderly dementia patients. Depakote had never been approved for that purpose, and Abbott lacked evidence that the drug was safe or effective for those uses. The company also admitted to marketing Depakote to treat schizophrenia, even though no study had found it effective for that purpose.
GlaxoSmith Kline agreed to pay a fine of $3 billion to resolve civil and criminal liabilities regarding its promotion of drugs, as well as its failure to report safety data. This is the largest health care fraud settlement in the United States to date. The company pled guilty to misbranding the drug Paxil for treating depression in patients under 18, even though the drug had never been approved for that age group. GlaxoSmithKline also pled guilty to failing to disclose safety information about the diabetes drug Avandia to the FDA.
Source: The Department of Justice.