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SAIL slips as OFS begins

Capital Market 

Steel Authority of India (SAIL) slumped 7.83% to Rs 68.85 after the offer for sale (OFS) opened for non-retail investors today, 14 January 2021.

Through the OFS, the Indian government proposes to sell 20,65,26,264 shares (representing 5% stake), with an option to sell an additional 5% stake or 20,65,26,264 equity shares in case of oversubscription. With this, the total OFS size stands at 41,30,52,528 shares, which is calculated at Rs 2,664 crore.

As per the latest shareholding pattern, Government of India holds 75% stake in SAIL as of 30 September 2020.

The floor price for the OFS has been set at Rs 64 per share, at a 14.2% discount to SAIL's closing price of Rs 74.70 on Wednesday, 13 January 2021.

The OFS opened on Thursday (14 January 2021) for non-retail investors, while both retail as well as non-retail investors will be able to subscribe on Friday (15 January 2021). A total of 12.5% of the offer size, has been reserved for retail investors.

As on 11:55 IST, the OFS received subscription for 5,33,37,029 shares or 29.52% against the base non-retail offer size of 18,07,10,481 shares.

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.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Thu, January 14 2021. 11:46 IST