SAIL disinvestment to take place on March 22

 

New Delhi, March 20:  

Steel Authority of India (SAIL) will be the last public sector undertaking to be divested in the current fiscal ending March 31, 2013.

An Empowered Group of Ministers, at its meeting today, gave green signal for the ‘Offer for Sale’ through stock exchanges to take place on March 22.

In early trade today, SAIL scrip touched a year's low of Rs 64.05 on the BSE. It was later trading at Rs 65.80, up 0.53 per cent on the BSE.

Equity dilution

Although, the Cabinet Committee on Economic Affairs (CCEA) has approved 10.82 per cent equity dilution, it is believed that the Government might offer 5 per cent and the remaining as green-shoe option.

Such an option provides a facility to sell a part of the total shares only if there is demand and for which bids are made. There was no official confirmation on this.

Disinvestment target

Earlier, it was estimated to get Rs 3,000 crore from this divestment. However, it is to be yet to be seen what will be the actual amount if only offer is made only for a part of the total issue size.

The Government has also revised the earnings from overall disinvestment to Rs 24,000 crore from the original target of Rs 30,000 crore. Till now, in the current fiscal, it has managed to collect around Rs 22,500 crore. 

AARTI

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