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HindustanTimes Fri,29 Aug 2014

SAIL offer for sale fully subscribed

HT Correspondent, Hindustan Times  Mumbai, March 22, 2013
First Published: 18:43 IST(22/3/2013) | Last Updated: 00:35 IST(23/3/2013)

The public sector steel major SAIL's Offer For Sale (OFS) of shares was fully subscribed on Friday, ensuring that the government gets at least Rs. 1,500 crore from the stake sale.

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"We are expecting around Rs. 1,500 crore," said Ravi Mathur, disinvestment secretary.

The government stake sale in India's largest steel producer received bids for 241.3 million shares against 240.3 million shares on offer, as per the data available on the Bombay Stock Exchange (BSE). The indicative price, which is the weighted average price of all valid bids, was Rs. 63.07 a share.

The government had fixed the floor price for the issue at Rs. 63, a 1.4 % discount to Thursday's close. Shares of SAIL on Friday closed at Rs. 63.4, down 0.78%, on the BSE.

The Empowered Group of Ministers (EGoM) on disinvestment, headed by finance minister P Chidambaram, had, earlier this week, decided to halve the SAIL offer size to 5.82% from the earlier planned and Cabinet approved 10.82%, amid a weak trend in the stock market.

SAIL sell-off was the last disinvestment for the current fiscal. With this, proceeds from PSUs stake sale in this fiscal would go up to Rs. 23,800 crore, the highest ever realisation from disinvestment in a single year. However, it would be slightly less than the revised estimates of Rs. 24,000 crore.

The steel major has a cash balance of more than Rs. 6,000 crore and a net worth in excess of Rs. 40,000 crore.


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