Comments
The government will sell five per cent of its shareholding in Steel Authority of India Ltd (SAIL) on Thursday and Friday through offer-for-sale (OFS) mechanism.. In case of over-subscription, the Centre plans to sell additional 5 per cent holding.
The floor price has been fixed as₹64. This is 14.32 per cent discount to Wednesday’s closing price of ₹74.70 on the BSE.
At the floor price and for the base offer, Government can fetch around ₹1,322 crore. If entire green-shoe option is exercised, then Government will get more than ₹2,600 crore.
The disinvestment to take place through Offer for Sale (OFS) on Stock Exchanges, better known as auction method. Institutional investor can place bid on Thursday while retail can do so on Friday. Bidding can be placed between 9.15 am to 3.30 pm on both days. There is no discount for retail investor.
Retail investor here mean an individual investor who places bid for Offer Shares of total value of nor more than ₹2 lakh. Minimum of 25 per cent of shares offered has been reserved for mutual funds and insurance companies and up to 5 per cent is reserved for employee.
Considering pandemic, disinvestment process has been slow as Government has managed to mop up around ₹30,000 crore as against budget estimate of ₹2.10 lakh crore. This estimate includes getting ₹1.20 lakh crore minority stake sales/strategic sales in Central Public Sector Undertakings (CPSUs) and ₹90,000 through stake sales in IDBI Bank and LIC.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.