Press Trust of India / New Delhi Oct 23, 2009, 19:25 IST
State-owned SAIL today said the finance ministry has given its in-principle approval for 20 per cent disinvestment of the steel giant.
The divestment comprises 10 per cent equity dilution by the government and the company issuing additional 10 per cent shares.
"...Ministry of Steel has communicated to the company 'in principle' approval of the Department of Disinvestment for further public offer equivalent to 10 per cent of existing paid-up equity capital by SAIL," the company said in a filing to the Bombay Stock Exchange.
It further said that the finance ministry has also given its approval for disinvestment of "equivalent size of equity held by the government of India in two discrete tranches, each containing five per cent of FPO plus five per cent offer for sale".
However, the company said that the proposal would be subject to approval of the Cabinet. "This is subject to fulfillment of certain conditions, including obtaining approval of the Cabinet Committee on Economic Affairs (CCEA)."
The timing of the stake sale and public offer would be decided after CCEA nod, it said.
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