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trendingNowenglish2017577https://zeenews.india.com/companies/sail-brings-in-sbi-cap-as-transaction-advisor-2017577.html

SAIL brings in SBI Cap as transaction advisor

Steel Authority of India (SAIL) had in February invited proposal for engagement of the transaction officer.

New Delhi: SBI Capital Markets (SBI Cap) has been roped in as the transaction advisor for the divestment process of three units of SAIL and Luthra and Luthra has been engaged as legal advisor for stake sale.

"SBI Cap is the transaction advisor while Luthra and Luthra Law Offices is the legal advisor," a source privy to the development said.

Protocol Insurance Surveyors & Loss Assessors is the assets valuer for the stake sale, the source said.

Steel Authority of India (SAIL) had in February invited proposal for engagement of the transaction officer.

The country's largest steel maker had proposed to engage the transaction advisor from among reputed professional consulting firms, investment bankers, merchant bankers, financial institutions, banks, etc for providing advisory services and managing the disinvestment process.

SBI Cap will also undertake tasks related to all aspects of the strategic disinvestment culminating into successful completion of the transaction.

It will also assist SAIL on modalities and timing of the strategic disinvestment, and prepare and submit a detailed operational scheme to successfully implement the stake sale process, including tentative timelines for each activity.

Moreover, it will finalise the process of strategic disinvestment, among others.

The government had in-principle decided for strategic disinvestment of SAIL's Alloy Steels Plant, Durgapur; Salem Steel Plant, Salem and Visvesvaraya Iron and Steel Plant, Bhadrawati with transfer of management control.

The government holds 75 per cent stake in SAIL, which has a turnover of Rs 43,337 crore in 2015-16 and its paid-up capital stood at Rs 4,130 crore.

Apart from the three special plants, SAIL owns and operates five integrated steel plants in Bhilai, Rourkela, Durgapur, Bokaro and Burnpur. It has a refractory unit in Bokaro and Chandrapur Ferro Alloy Plant in Maharashtra.

In addition, it operates nine iron ore, three each of limestone, dolomite and coal mines for captive consumption.

 

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