Trade Resources Economy Rashtriya Ispat Nigam Limited Decided to Initiate a Slew of Financial Measures

Rashtriya Ispat Nigam Limited Decided to Initiate a Slew of Financial Measures

Press Trust of India reported that Rashtriya Ispat Nigam Limited has decided to initiate a slew of financial restructuring measures and merge a subsidiary with itself for better valuation during disinvestment.

Indian steel minister Mr Beni Prasad Verma said in a written reply to the Rajya Sabha “In order to fetch a better value of the company through IPO, a decision has been taken to reduce equity capital base of RINL considerably by transferring 40% to 60% into reserves. Decision has also been taken for early redemption of an amount of INR 1,632 crore of 7% of preference share capital.”

He added “At the same time, Eastern Investment (EIL), a subsidiary of the company, would be merged with RINL by swapping the shares through a no cash transaction. RINL has already started working on these issues.”

The government could not proceed with the RINL IPO at least thrice this year due to various reasons. The latest attempt in October failed due to differences of opinions on valuations between the government and book running lead managers of the issue.

Source: http://www.steelguru.com/indian_news/RINL_to_go_for_financial_restructuring_Minister/296180.html
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RINL to go for financial restructuring - Minister
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