New Delhi: The government has decided to sell up to 20.65 crore shares or 5% of total equity of Steel Authority of India Limited (SAIL) through an Offer for Sale, the government official said on Wednesday (January 13). Additionally, the government also has an option to sell up to 20.65 crore share of SAIL. With this, the government would divest 5 percent equity in the firm with a 5% green shoe option.
« The floor price of the offer will be Rs 64 per equity share, » SAIL said in a statement to the Bombay Stock Exchange on Wednesday. The company’s scrip closed at Rs 74.7, 1.58% down from the previous day.
The OFS, which will be at a discount from the market price of the stock, will open on January 14 for non-retail investors and for retail investors on January 15. A minimum of 12.5% of equity shares will be reserved for retail investors, while 25% of the offer shares will be reserved for mutual funds and insurance companies.
The government is estimated to earn over Rs 2600 crore from the present sale. The proceeds will help in moving close to the divestment target of Rs 2.1 lakh crore set for FY 2020-21.
SAIL is India’s largest steel producer with an annual capacity of about 21 million tonne per annum (MTPA).
The government holds 75% stake in SAIL. It had last sold 5% stake in the steel CPSE in December 2014.
SAIL earlier posted 9% growth in crude steel output at 4.37 million tonne (MT) during October-December period of the ongoing fiscal year. The company had produced 4 MT crude steel in the year-ago period, SAIL said in a statement. During the period under review, its total sales were at 4.32 MT, up about 6 per cent from 4.09 MT in the corresponding quarter of the preceding fiscal year.
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