Share price of Steel Authority of India Ltd (SAIL) fell in trade today amid a report that government was planning to sell 5% stake in SAIL through an offer for sale as part of its of disinvestment programme. SAIL share price fell up to 6.17% to Rs 45.65 compared to the previous close of Rs 48.65 on BSE.
SAIL stock has lost 6.44% in last two days. The large cap stock has gained 2.56% in last one year and risen 7.34% since beginning of this year. The stake sale is likely to fetch about Rs 1,000 crore to the exchequer.
The stake sale could become a part of government's divestment process in the current or next fiscal. In the current fiscal, government lowered its disinvestment target to Rs 65,000 crore from the Budget estimate of Rs 2.1 lakh crore.
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For next fiscal, Modi government has set an ambitious target of Rs 2.05 lakh crore. Officials from the department of investment and public asset management (DIPAM) and steel ministry plan to hold roadshows in Singapore and Hong Kong for stake sale.
However, the Hong Kong roadshow might be called off due to coronavirus outbreak. The government holds 75% stake in SAIL. It last sold 5% stake in the steel firm in December 2014. "We are looking at a 5% stake sale via offer for sale (OFS), but we will assess investor demand in the roadshows," an official said.
By Aseem thapliyal