Govt to sell SAIL' 5.82% stake; may rake in about Rs 1,564 cr

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The government will sell its 5.82 per cent stake in steel-maker SAIL on Friday through the offer for sale (OFS) route, which can rake in about Rs 1,564 crore at today's closing price.
The company, which got the nod of the Empowered Group of Ministers earlier in the day, will announce the floor price for the offer after the closing of the market hours tomorrow, SAIL said in a communication to the exchanges.
SAIL's scrip touched a year-low on the BSE at Rs 64.05 during the intra-day trade in the BSE. However, it recovered later to settle at Rs 65.05, down 0.61 per cent over the previous closing.

At Rs 65.05 per share, government's 5.82 per cent stake or 24,03,96,572 shares in the company could fetch Rs 1,564 crore from the issue, if fully-subscribed.
The Cabinet Committee on Economic Affairs had in July last year approved 10.82 per cent disinvestment in SAIL out of government's 85.82 per cent stake, through the OFS route.
The merchant bankers for SAIL share sale include SBI Caps, Kotak Mahindra and Deutsche Bank. Post stake sale, the government's stake in SAIL will come down to 80 per cent.