SAIL OFS ends with strong subscription

The OFS opened on Thursday (14 January 2021) for non-retail investors, while both retail as well as non-retail investors were allowed to bid on Friday (15 January 2021).

The Government of India initially offered to sell 20,65,26,264 shares, constituting 5% paid-up share capital of the company, through the OFS. The floor price for the OFS was set at Rs 64 per shares, at a 14.2% discount to SAIL's closing price of Rs 74.70 on Wednesday, 13 January 2021.

On Thursday (T day), the OFS received subscription for 74,74,60,041 shares or 413% against the base non-retail offer size of 18,07,10,481 shares.

Following the strong response on T day, the government decided to exercise the oversubscription option of 20,65,26,264 equity shares (5% equity) in addition to the base offer. Accordingly, the final share sale was 41,30,52,528 shares, which aggregates to Rs 2,664 crore, constituting 10% of the paid-up equity share capital of SAIL.

As on 15:30 IST on Friday (T+1 day), the OFS received total bids for 13,49,88,973 shares or 522.89% of the base retail offer size of 2,58,15,783 shares.

The retail segment received bids for 12,48,35,009 shares or 483.56% of the base retail offer size. The non-retail segment received bids for 1,01,53,964 shares or 39.33% of the base retail offer size.

The Government of India held 75% stake in SAIL as of 30 September 2020. The SAIL OFS is part of the government's disinvestment programme through which it is targeting to raise a record Rs 2.1 lakh crore in the current fiscal ending 31 March 2021.

SAIL is engaged in the manufacturing of flat products, such as hot rolled (HR) coils, HR plates, cold rolled (CR) coils, pipes and electric sheets, and long products, such as thermo mechanically treated (TMT) bars and wire rods.

The PSU steel maker reported a consolidated net profit of Rs 436.52 crore in Q2 September 2020 as compared to a net loss of Rs 285.92 crore in Q2 September 2019. Total income rose 21.21% to Rs 17,393.86 crore in Q2 September 2020 over Q2 September 2019.

Shares of SAIL jumped 4.39% at Rs 70.20 on Friday.

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