SAIL OFS: The floor price of offer has been fixed at Rs 64 per share, at a discount of 14.32 per cent as compared to Wednesday's closing price of Rs 74.70
Government of India will sell up to 10 per cent stake in Steel Authority of India Ltd (SAIL) through an offer for sale (OFS), which could fetch over Rs 2,600 crore for the exchequer. The floor price of offer has been fixed at Rs 64 per share, at a discount of 14.32 per cent as compared to Wednesday's closing price of Rs 74.70.
SAIL OFS for non-retail investors will open on January 14, while for retail investors it will start on January 15. A minimum of 12.5 per cent of offer shares will be reserved for retail investors, and 25 per cent for mutual funds and insurance companies.
The government, which held 75 per cent stake in SAIL as of September quarter, will divest 5 per cent equity stake in the company with a 5 per cent greenshoe option, an option to sell further equity in case of over-subscription. The government had last sold 5 per cent stake in the state-owned steel maker in December 2014.
As per an exchange filing, the OFS size is 20.65 crore equity shares of the face value of Rs 10 each, with an option to additionally sell up to 20.65 crore equity shares of the firm (over-subscription option). Based on this, the total OFS size is calculated to be 41.30 crore shares for Rs 2,664 crore.
Incorporated in 1973, SAIL is a large cap company with a market cap of Rs 30,851.79 crore, operating in metals-ferrous sector. It is country's largest steel maker having a total installed capacity of about 21 million tonnes per annum (MTPA).
Ahead of the announcement, shares of SAIL India ended Wednesday's trade at Rs 74.70, down 1.58 per cent, against previous closing price of Rs 75.90 on the BSE.
By Chitranjan Kumar