Indian Government to Divest 10% Stake in SAIL
The Indian Government has decided to offload up to a 10% share of public sector steel maker Steel Authority of India Ltd through the offer for sale route, raising at least INR 2,643 crore. The OFS, which will hit the market on January 14, will have a floor price of INR 64 a share. The offer price comes at a 14%t discount to the closing rate on January 13. The offer is being broken down into two parts. Non retail shareholders will be able to subscribe to the issue on January 14, while retail shareholders will be able to participate only on January 15. Department of Investment and Public Asset Management Secretary Mr Tuhin Kanta Pandey tweeted "Offer for Sale (OFS) in SAIL opens on Thursday (14.1.2021) for non-retail investors. 15th January (Friday) is for retail investors. GoI would divest 5% equity with a 5% greenshoe option."
Indian Government appears to be taking the benefit of the rally in the market, especially in the steel stocks. On the back of a record price of steel in the market and gross margin, the scripts have rallied. Over the last three months, the SAIL stock has more than doubled. From a low of INR 32.8 on October 15, it touched a high of INR 80.35 on January 5. It closed at INR 74.70, down 1.75% on January 13.
Indian government holds 75% stake in PSU Steel Authority of India Ltd. It had last sold 5% stake in December 2014.