Sail declines on successfully concluding Govt's 5% stake sale

Steel Authority of India declined 0.36% to Rs 82.50 at 9:30 IST on BSE after the finance ministry said that the offer for sale for divestment of 5% of Government of India equity in Sail was successfully concluded on Friday, 5 December 2014.

The announcement was made by the finance ministry after trading hours on Friday, 5 December 2014.

Meanwhile, the BSE Sensex was down 15.42 points, or 0.05%, to 28,442.68.

On BSE, so far 5.74 lakh shares were traded in the counter, compared with an average volume of 6.99 lakh shares in the past one quarter.

The stock hit a high of Rs 82.90 and a low of Rs 82 so far during the day. The stock hit a 52-week high of Rs 112.90 on 9 June 2014. The stock hit a 52-week low of Rs 54.05 on 26 February 2014.

The stock had underperformed the market over the past one month till 5 December 2014, falling 2.07% compared with 1.94% rise in the Sensex. The scrip had also underperformed the market in past one quarter, declining 1.78% as against Sensex's 5.3% rise.

The large-cap steel maker has an equity capital of Rs 4130.53 crore. Face value per share is Rs 10.

Steel Authority of India (Sail)'s issue was oversubscribed more than two times. In addition, retail investors were given 10% allocation and this category was also hugely oversubscribed more than 2.5 times, a record for any retail participation in any offer for sale (OFS), the finance ministry said. The divestment of 5% stake in Sail will fetch about Rs 1715 crore for the government. With this divestment, the Government of India's stake in Sail would come down to 75% and the company has become compliant to the public shareholding norms of 25% for listed companies, the finance ministry said in a statement.

Sail's net profit fell 45% to Rs 649.49 crore on 7.1% fall in total income to Rs 11840.64 crore in Q2 September 2014 over Q2 September 2013.

Powered by Capital Market - Live News