SAIL OFS to hit market on March 22, stock up
The divestment secretary has confirmed about the Empowered Group of Ministers (EGoM) approving SAIL's offer-on-sale issue which will hit the market on March 22, say sources.
March 20, 2013 / 20:53 IST
The divestment secretary confirmed on Wednesday about the Empowered Group of Ministers (EGoM) approving SAIL's divestment programme which will hit the market on March 22.
The government is likely to divest over 10 percent stake of which 5.82 percent will be offloaded via offer-for-sale (OFS) issue on March 22 and the remaining 5% will be divested in FY14, say sourcesThe EGoM, headed by finance minister P. Chidambaram will decide on the floor price of OFS tomorrow.The merchant bankers for the issue include SBI Caps, Kotak Mahindra and Deutsche Bank. Post divestment, the government's stake in the company would come down to 75 percent and is likely to fetch it around Rs 3,000 crore.Of the Rs 24,000 crore divestment target for FY13, the government has already raised over Rs 21,000 crore by offloading stakes in various public sector firms. For the next fiscal, the government is expected to raise over Rs 55,000 crore.Meanwhile, the company's chairman CS Verma in an interview to CNBC-TV18 said that the company will soon start road shows for the divestment programme, but a decision on pricing is not yet taken."In a dynamic market, prices keep changing each day. We will take a call on it during our road show," he added.Shares of the company are up 0.53 percent to Rs 65.80.Read This: Expect SAIL to complete divestment by FY13: CS Verma Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
