Tuesday 22 May 2012

News Hour- RINL to reserve 10% of offering for employees

KOLKATA: Rashtriya Ispat Nigam Limited, the corporate entity of Vizag Steel Plant which is planning to make a public offer of equity shares, filed a draft red herring prospects (DRHP) with the Securities and Exchange Board of India ( SEBI) on Friday, May 18.

RINL was converted into a public limited company after a resolution was passed by the shareholders at the extraordinary general meeting held on April 21, 2012.

As part of its proposed public offer, RINL board has approved the full permitted reservation of 10% of equity shares ie, 48,898,462 shares for subscription by eligible employees of RINL, with a discount of 5% on the offer price.

Incidentally, other PSUs like NMDC, MOIL, CIL etc had reserved between 2 to 5 % shares for the eligible employees. RINL board has taken this decision to encourage greater participation and involvement of its employees in the plant's operations and functioning.

RINL's public offer comprises a net offer to public of 440,086,158 equity shares and a reservation of 48,898,462 equity shares for subscription by eligible employees totaling 488,984,620 equity shares of face value of Rs 10 each.

(Source- http://economictimes.indiatimes.com)

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