SAIL scrip touched a year-low of R64 on the Bombay Stock Exchange on Wednesday, before ending down 0.6% at R65. The public sector company’s shares have not been part of the market rally during 2012. The stock, which touched a 52-week high of R116 on February 17, 2012, has been losing ground ever since talks of disinvestment.
The Cabinet Committee on Economic Affairs had in July last year approved a 10.82% disinvestment in SAIL out of the government’s 85.82%, through the OFS or the auction route.
However, the disinvestment plan could not be taken forward amid subdued market conditions. The government has kept the issue on hold anticipating a turnaround in the market.
The Department of Disinvestment has already held roadshows in Singapore, Hong Kong, the US, the UK and Europe for the proposed disinvestment.