Govt to sell 10% stake in SAIL via OFS

Govt to sell 10% stake in SAIL via OFS

In a move that is expected to fetch Rs 2,600 crore to the exchequer in divestment receipts, the government will sell up to 10% of the stake held in Steel Authority of India (SAIL) through an offer for sale (OFS).

The government is selling 206.5 million shares or 5% with a floor price of Rs 64 per share.

The option to sell another 5% has also been kept by the government if the issue is oversubscribed. The government’s stake post the sale will come down from 75% to 65% if the greenshoe option is exercised.

The 10% stake sale in the steelmaker could fetch the government Rs 2,600 crore in divestment receipts.

The issue was open for non-retail investors on January 14 and will be open today for retail investors.

With broad markets at record highs, the government is moving quickly with stake sales and initial public offerings as it tries to meet its ambitious Rs 120,000 crore targets for the ongoing fiscal. The government is also expected to fetch about Rs 1,500 crore from IRFC IPO to be launched on January 18, the first one to make allotment for anchor investors.

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