Steel Authority of India Limited’s offer for sale opened on 14 January 2021 for non-retail investors, while both retail as well as non retail investors were allowed to bid on 15 January 2021. On 14 January 2021, the OFS received subscription for 747,460,041 shares or 413% against the base non retail offer size of 180,710,481 shares. The government decided to exercise the oversubscription option of 206,526,264 equity shares, 5% equity, in addition to the base offer. The retail segment received bids for 124,835,009 shares or 483.56% of the base retail offer size. The non-retail segment received bids for 10,153,964 shares or 39.33% of the base retail offer size. Accordingly, the final share sale was 413,052,528 shares, which aggregates to INR 2,664 crore, constituting 10% of the paid-up equity share capital of SAIL.
The Government of India initially offered to sell 206,526,264 shares, constituting 5% paid up share capital of the company, through the OFS. The floor price for the OFS was set at INR 64 per shares, at a 14.2% discount to SAIL's closing price of INR 74.70 on 13 January 2021.
The Government of India held 75% stake in SAIL as of 30 September 2020. The SAIL OFS is part of the government's disinvestment programme through which it is targeting to raise a record INR 2.1 lakh crore in the current fiscal ending 31 March 2021.