SAIL, IOC, ONGC public issues to hit market in January-March

Public offers of three blue chip companies SAIL, Indian Oil and ONGC will hit the capital market in the last quarter of the current fiscal, even as the government has shelved the disinvestment plans for MMTC and RINL.

“Disinvestment for SAIL, IOC and ONGC will happen in the last quarter of the current fiscal (January-March 2010-11)”, Disinvestment Secretary Sumit Bose told reporters here.

The details of the public issue of petroleum major Indian Oil Corporation (IOC) will be decided shortly, he said, adding the RFQ (Request for Qualification) for appointment of merchant bankers will be issued in the next couple of days.

The government proposes to raise Rs 40,000 crore from sale of equity in the public sector undertakings in the current fiscal.

“We are hopeful of achieving that target of (Rs 40,000 crore),” Mr. Bose said.

On the ability of capital market to absorb three large public issues in one quarter, he said, “there is an enormous appetite in the market.”

The government, Mr. Bose added, will not go ahead with the public issues of the trading company MMTC and steel producer Rashtriya Ispat Nigam Limited (RINL) in the current fiscal.

“We will look at (Rashtriya Ispat Nigam Limited) it in the next fiscal”, he said.

Replying questions on amount and time of the IOC public issue, he said, the modalities would be decided later.

Similarly, he added, the modalities for disinvestment of oil giant ONGC would be finalised in the coming days.