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SAIL share falls nearly 10% amid govt stake sale through OFS

SAIL OFS for non-retail investors opened 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

SAIL share falls nearly 10% amid govt stake sale through 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

Shares of Steel Authority of India Ltd (SAIL) were trading almost 10% lower in Thursday's session as government will sell up to 10 per cent stake in PSU 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 opened 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.

Falling for the second straight session, stock price of Steel Authority of India opened with a loss of 8.43% today at Rs 68.40 today and fell to the day's low of Rs 68.40, down 9.5% against the last close of Rs 74.70. The stock rose to a high of Rs 69.65 on BSE in early session.

SAIL stock has fallen 10.34% in the last 2 days of consecutive fall.

SAIL stock is trading higher than 20, 50, 100 and 200-day moving averages but lower than 5-day moving averages.

Steel Authority of India stock has fallen 12% in one week. Year to date, the stock has fallen 8%.

Market capitalisation of SAIL stood at Rs 44,597.73 crore today. The stock has touched a 52 week high of Rs 80.35 and a 52-week low of Rs 20.15. Share of Steel Authority of India, with Rs 10 face value has risen 16% in a month and 34% in one year.

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 steelmaker 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.

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