Steel Min starts discussions with FinMin on SAIL stake sale
With the stock market heading north, the Steel Ministry has approached the Ministry of Finance to initiate the disinvestment process in SAIL along with its proposed public offering.business Updated: Sep 28, 2009 12:19 IST
With the stock market heading north, the Steel Ministry has approached the Ministry of Finance to initiate the disinvestment process in SAIL along with its proposed public offering.
"Discussions are on between us and the Ministry of Finance on the matter of disinvestment in SAIL. Its public offer is also being looked at," Steel Secretary P K Rastogi told PTI.
He, however, declined to elaborate saying discussions are at the preliminary stage.
The quantum of government's holding to be sold through disinvestment and fresh equity to be raised through the public offering could not be ascertained.
The equity sale could go along with the proposed public issue of the country's largest steel maker. Official sources said the measures could be taken in a way that government's holding in the firm does not fall below 75 per cent.
The government currently owns 85.82 per cent stake in SAIL. Besides, about 4.59 per cent is with the Life Insurance Corporation and the rest is with the public.
SAIL shares were closed at Rs 169.20 on Friday last week.
The steel major has already submitted the proposal for its public offer to the ministry and is awaiting approval for the proposed issue, proceeds of which would part finance its Rs 70,000-crore expansion project.