PTI reported that Steel Authority of India Limited has decided not to issue any fresh equity and instead go ahead with its proposal to offload 5% stake in the premium company.

The government holds 85.82% stake in SAIL. The 5% stake sale in SAIL is likely to fetch the government over INR 2,000 crore at current market prices.

Mr Mohammed Haleem Khan disinvestment secretary at SAIL said that "The SAIL board has decided that there will be no fresh equity issue. Only the government stake sale will happen."

Mr Khan said that the change in SAIL's follow on public offer plan would require fresh approval from the union cabinet. SAIL's FPO has failed to meet the deadlines repeatedly since December 2010 due to reasons such as rising coking coal prices and problems with merchant bankers, besides adverse market conditions.

(Sourced from PTI)