State-run Steel Authority of India Ltd has shortlisted Deutsche Bank, JP Morgan and four others to manage a share issue that may raise up to $1.7 billion, sources with direct knowledge said on Thursday.
Other bankers shortlisted by the largest domestic producer of the alloy are HSBC, SBI Capital, Enam Securities and Kotak Mahindra Capital, the sources, who could not be named as they were not authorised to speak to the media, said.
Officials at SAIL in New Delhi and the shortlisted banks were not immediately available for comment.
The government plans to sell 5 per cent in the company, while SAIL will issue new shares equal to 5 per cent of its existing share capital. The government owns about 86 per cent in the firm, which can produce 15 million tonnes of steel a year.
The sale is likely to be launched in January, the sources said.
A 10 per cent share sale would fetch about $1.7 billion, according to Reuters calculation based on the current market price. In April, India's cabinet approved a 20 per cent stake sale in the company in two tranches.
Shares in SAIL, with a market value of $16.5 billion, were trading up 1.8 per cent at 191.20 rupees at 11:44 a.m. (0614 GMT), while the BSE Sensex was up 0.5 per cent.
The stock is down about 21 per cent in the year to date against a 5 per cent rise in the benchmark.
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