Sail slips after Govt announces 5% stake sale

Steel Authority of India fell 2.39% to Rs 83.60 at 9:25 IST on BSE after the government announced an offer for sale for divestment of 5% stake in the company.

The announcement was made after market hours on Wednesday, 3 December 2014. Steel Authority of India (Sail) shares today fell 4.67% to close at Rs 85.65.

Meanwhile, the BSE Sensex was up 209.03 points, or 0.73%, to 28,651.74.

On BSE, so far 2.91 lakh shares were traded in the counter, compared with an average volume of 6.33 lakh shares in the past one quarter.

The stock hit a high of Rs 84.35 and a low of Rs 83 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 2 December 2014, falling 1.27% compared with 2.07% rise in the Sensex. The scrip had also underperformed the market in past one quarter, sliding 0.75% as against Sensex's 5.27% rise.

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

The government has announced an offer for sale (OFS) of upto 20.65 crore equity shares, or 5% stake, of Sail through a sale on the separate window provided by the BSE and NSE on Friday, 5 December 2014 at 9:15 IST and shall close on the same date at 15:30 IST.

As much as 10% of the offered shares has been reserved for retail investors, who can buy shares worth up to Rs.2 lakh in the share sale. A minimum of 25% of the issue size would be reserved for mutual funds and insurance companies. Retail investors will be allocated shares at a discount of 5% to the bid price entered by them.

The floor price for the share sale will be announced by 17:00 today, 4 December 2014, Sail said in a regulatory filing.

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.

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

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