SAIL drops after fixing floor price for OFS

Steel Authority of India lost 1.7% at Rs 83.90 at 10:06 IST on BSE after the company yesterday, 4 November 2014, fixed floor price for the offer for sale at Rs 83 per share.

Meanwhile, the S&P BSE was up 31.68 points or 0.11% at 28,594.50.

On BSE, so far 3.71 lakh shares were traded on the counter as against average daily volume of 8.21 lakh shares in the past two weeks.

The stock hit a high of Rs 84.70 and a low of Rs 83.50 so far during the day.

As at 9:55 IST, bids were received for a total of 4.02 crore shares or 19.49% as against 20.65 crore shares on offer. The government after market hours on 3 December 2014, announced an offer for sale (OFS) of upto 20.65 crore equity shares or 5% stake in SAIL through a sale on the separate window provided by the BSE and NSE today, 5 December 2014. As much as 10% of the offered shares have been reserved for retail investors, who can buy shares worth up to Rs 2 lakh in the share sale. Retail investors will be allocated shares at a discount of 5% to the bid price entered by them. The floor price for the OFS was fixed at Rs 83 per share after market hours yesterday, 4 December 2014. The OFS was at a discount of 2.75% to the stock's closing of Rs 85.35 yesterday, 4 December 2014.

SAIL's net profit declined 45% to Rs 649.49 crore on 1.4% growth in net sales to Rs 11565.59 crore in Q2 September 2014 over Q2 September 2013.

Government of India holds 80% stake in SAIL (as per the shareholding pattern as on 30 September 2014).

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