Mar 22, 2013 07:37 PM IST | Source: CNBC-TV18

SAIL's share auction covered 98%

SAIL's offer-for-sale issue was nearly fully subscribed wherein a single-day auction received bids for 235.3 million shares, or 98 percent of the shares on offer, at an indicative weighted average price of 63.07 rupees per share.

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SAIL's offer-for-sale issue was fully subscribed wherein a single-day auction received bids for 24.13 crore shares at an indicative weighted average price of Rs 63.07  per share.

The government had aimed to offload over 5 percent stake in the company by selling 24.03 crore shares at a minimum bid price of Rs 63/share.

Shares of the company closed the at Rs 63.35, down 0.9%.

Meanwhile, the government initially had plans to offload 10 percent in the company via OFS issue, but later due to adverse market conditions, it trimmed its stake size to 5 percent.

However, the government will complete its divestment programme in FY14, when hopefully the stock will gain momentum on positive outlook on the company. Analysts say, steel demand is likely to improve and the company is nearing its Rs 70000 crore expansion plan, that will boost investor sentiment.

Currently, the stock is trading nearly at an all-time low due to poor steel demand and high interest cost.

Read This:  Subscribe to SAIL OFS, says Microsec

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