RINL fiasco shows govt’s weak grip on equity valuations2 min read 11 Oct 2012, 09:36 AM IST
If govt wants a ‘fair’ price, then it may have to wait for investor appetite to become stronger
The government’s much-touted renewed push on disinvestment has got off to a false start with the deferment of the Rashtriya Ispat Nigam Ltd (RINL) public offering. The reason: it found the price range suggested by merchant bankers to be too low. This is not the first time that the government has called off an issue because of pricing. But the reason given is new, that the offer was below the company’s book value.