The Empowered Group of Ministers (EGoM) have fixed a floor price of Rs 63/share for SAIL's offer-for-sale (OFS) issue scheduled tomorrow.
The floor price is around 1.5 percent lower than the current share price of the company which closed the day at Rs 63.90.
The government has already divested stakes in seven public sector companies in FY13 and SAIL is the eighth and the last one in the process. However, due to adverse market conditions, the government will divest only over 5 percent stake in the OFS issue tomorrow and the remaining 5 percent will be auctioned in FY14.
SAIL stock is currentl trading at over 30 percent less than its all time high of Rs 84.90, in March last year. Industry watchers say that the stock is likely to gain momentum later this year, when the company completes its expansion programme.
Meanwhile, the government will be able to raise around Rs 1,500 crore through this OFS issue instead of Rs 3000 crore planned earlier. It had set a target of raising Rs 24,000 crore in FY13 via divestment programmes, but it may miss its target due to trimming its stake sale plan in the company.
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