SAIL stake sale commences on bourses, shares tumble
The floor, or the minimum offer, price for SAIL's share sale has been set at Rs 63 apiece, which was a 1.41 per cent discount to yesterday's closing price.
On the BSE, the company's scrip hit a low of Rs 63.10, down 1.25 per cent over previous close, soon after the start of market hours. It continued to trade in the range of Rs 63.10-63.70 in the early minutes, which was higher than the base price.
At the floor price of Rs 63, a 5.82 per cent stake sale in SAIL could garner around Rs 1,514 crore to the exchequer.
The Empowered Group of Ministers (EGoM) on disinvestment, headed by Finance Minister P Chidambaram, yesterday decided on pricing of 24.03 crore share or 5.82 per cent stake sale of the country's largest steel producer through the Offer For Sale (OFS) route.
The auction, if subscribed fully, would take the proceeds from disinvestment in this fiscal to at least Rs 23,800 crore, the highest ever realisation on disinvestment front in a single year. It would be, however, a tad less than the revised estimates of Rs 24,000 crore.
SAIL stock has lost 8 per cent in the last one week and over 30 per cent since March last year.
The government currently holds 85.82 per cent stake in the company.
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