The RINL issue has already been deferred thrice since the filing of the draft prospectus with market regulator SEBI on 18th May last year
New Delhi: State-run Rashtriya Ispat Nigam's (RINL) Rs2,500-crore initial public offer (IPO) is unlikely to hit the market in current fiscal as it has to start the process anew following expiry of the offer document filed with Securities and Exchange Board of India (SEBI), reports PTI.
"The company had filed red herring prospectus with SEBI on 8th October hoping to launch the IPO on 16th October. Now, it has gone past three months and with this, it has lost validity. This calls for submission of documents afresh which take some time," a Steel Ministry official said.
"Taking the time required for RINL to file offer document into consideration, it is unlikely that the issue will be launched within the current fiscal," he added.
The RINL issue has already been deferred thrice since the filing of the draft prospectus with market regulator SEBI on 18th May last year.
First, it was put on hold as a result of volatile market conditions and then due to a major explosion, which took place during the trial of a new oxygen control unit near the steel melting shop at Vizag Steel Plant (VSP).
Finally, in October last year, it was deferred following disagreements on the pricing of issue with merchant bankers.
The issue was supposed to kick-start the government's Rs30,000 crore disinvestment process for the current fiscal that has mopped up a little over Rs6,900 crore so far. Ten PSUs that include Oil India, NTPC, Bhel and SAIL are on the list of the government's disinvestment programme.
RINL is the second largest state-owned steel maker in the country producing three million tonnes per annum (mtpa) at its lone facility at Visakhapatnam. The capacity is being raised to 6.3 mtpa in the current fiscal.
The Cabinet Committee on Economic Affairs in January had approved disinvestment of 10% of governments 100% stake in the firm.
Separately, the Bombay High Court has deferred hearing on a case filed by SEBI against a CIC order that asked the regulator to disclose details of an insider-trading case involving Reliance Petroleum, prior to its merger with Reliance Industries
Mumbai: The Securities Appellate Tribunal (SAT) has postponed hearing to 21st February on the petition filed by Reliance Industries Ltd (RIL) against market regulator Securities and Exchange Board of India (SEBI)'s rejection of its plea for consent settlement, reports PTI.
Earlier SAT had adjourned the case to 24th January, after the regulator sought more time to prepare its defence.
When contacted, an RIL official also said the hearing has been postponed to 21st February.
At the last SAT hearing on 11th January, SEBI lawyer Shiraz Rustomjee had said that the regulator had received the RIL petition only on 10th January and that it did not get time to study the same.
The SAT is being presided over by member PK Malhotra.
Meanwhile, the Bombay High Court has deferred hearing on a case filed by SEBI against a Central Information Commission (CIC) order that asked the regulator to disclose the details of an insider-trading case involving Reliance Petroleum prior to its merger with Reliance Industries.
A division bench of Justices SZ Vajifdar and Mridula Bhatkar was informed that Reliance had already moved the Delhi High Court challenging the CIC order which is slated for hearing on 30th January.
The Delhi High Court had earlier granted interim stay on the order. Following this, the Bombay High Court adjourned hearing into SEBI's petition till 21st February.
At the last SAT hearing, Rustomjee had also challenged the maintainability of the RIL petition, saying it was a non-starter and that under the consent procedure, appeals were not contemplated and therefore, the tribunal should decide whether to admit the petition at all.
Janak Dwarkadas, representing RIL, had said his client had to go into an appeal as it felt that SEBI had acted in a discriminatory manner in the case.
Reliance Industries had sought to settle certain investigations into alleged violation of insider-trading norms in sale of shares of its erstwhile subsidiary Reliance Petroleum in 2007, but the application to settle the matter under SEBI's consent framework was rejected by SEBI.
Consequently, RIL filed an appeal before the SAT.
RIL's appeal against SEBI was earlier scheduled to be heard by SAT on 4th January, but was adjourned to 11th January.
RIL is believed to have challenged SEBI's decision to reject its application and also the recent changes made by SEBI in the regulations governing settlement of cases through the consent mechanism--especially for cases already under consideration.
Under SEBI's consent mechanism, companies can seek to settle cases with the market regulator after payment of certain charges and disgorgement of any ill-gotten gains.
In May 2012, SEBI tightened the regulations for settlement through consent framework, as a result of which many cases including those related to insider-trading, cannot be settled through this mechanism.
On 3rd January, SEBI published a list of 149 consent pleas, including 16 from entities related to RIL group, which it had found unsuitable for settlement through consent process. These include applications of RIL itself and that of RIL Chairman Mukesh Ambani's close aide Manoj Modi.
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