The government today decided to sell 5.82 per cent stake in SAIL at a minimum price of Rs 63 apiece, a 1.41 per cent discount to closing price, to raise Rs 1,514 crore.
"The EGoM has set the floor price for SAIL stake sale at Rs 63 per share," a top government official told PTI.
Government will sell 24.03 crore shares or 5.82 per cent stake through Offer for Sale (OFS) tomorrow.
In an unusual move, a high powered ministerial panel met for the second time in two days to deliberate on the pricing of the OFS as the stock slumped 8 per cent in past one week.
The Empowered Group of Ministers (EGoM), headed by Finance Minister P Chidambaram, is believed to have yesterday decided on the pricing of the issue and a formal announcement was expected after the close of market hours today.
But departing from the practice followed in previous disinvestments, the panel again met today apparently perturbed by the volatility in the stock.
Shares of SAIL closed at Rs 63.90, down 1.77 per cent on the BSE, trading at its four-year low level. The stock has lost more than 30 per cent since March last year.
"We need to keep market condition in mind," SAIL Chairman C S Verma said after the EGoM meeting today.
The EGoM had yesterday approved a 5.82 per cent stake sale in SAIL, scaling down from the 10.82 per cent for which the Department of Disinvestment (DoD) had Cabinet approval. The government currently holds 85.82 per cent stake in SAIL.
The auction, if subscribed fully, would take the proceeds from disinvestment for the current fiscal to around Rs 23,800 crore, a tad less than the Rs 24,000 crore target set in revised estimates.
