SAIL stake sale roadshows to start by month-end

The roadshows will be held in Mumbai and Chennai

Domestic roadshows for the five per cent divestment in Steel Authority of India Ltd (SAIL), likely to fetch Rs 1,800 crore, will start by this month-end. The exercise to attract foreign investors will begin in the first week of September, a source in the steel ministry said. "The issue will be in the middle of the next month." Domestic roadshows for the issue, in which the government’s 206.5 million shares would be divested through the auction route, will be in Mumbai and Chennai.

Two teams will be sent to meet with overseas investors, he said, adding that while one would visit London, New York and Boston, the other one would solicit the participation of the investors based in Singapore and Hong Kong.

In each of the overseas roadshow, the team would comprise of one official from the company, one from the Steel Ministry and one from the DoD.

The government is likely to start with SAIL its ambitious Rs 43,425 crore disinvestment target by selling its stake in state-owned companies.

The Finance Ministry is of the view that since the Follow -on Public Offer route takes about 3-4 months for all regulatory clearances, the OFS route would be a better bet as the exercise can be completed within 15 days to one month for launching the issue.

The Cabinet had in July 2012 approved a 10.82 per cent stake sale in SAIL. The first tranche of disinvestment of 5.82 per cent was completed in March 2013.