Govt To Sell Up To 10 Per Cent Stake In SAIL Via Offer For Sale, Likely To Fetch Rs 2,600 Crore To The Exchequer

The Centre will sell up to 10 per cent stake in Steel Authority of India Ltd (SAIL) through offer for sale (OFS).

The OFS will take place on Thursday (14 January) and Friday (15 January).

"Offer for Sale (OFS) in SAIL opens on Thursday (14.1.2021) for non-retail investors. 15th January (Friday) is for retail investors. GoI would divest 5 per cent equity with a 5 per cent greenshoe option," said Tuhin Kanta Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM) on Twitter.

The government is selling 206.5 million shares or 5 per cent in the one of the largest steel-making companies with a floor price of Rs 64 a share. It has also kept the option to sell another 5 per cent if the issue is oversubscribed, reports Business Standard.

The 10 per cent stake sale in the steel maker could fetch the government Rs 2,600 crore in divestment receipts.

After the sale, the government's stake in SAIL will come down from 75 per cent to 65 per cent.

The move comes as the government tries to meet its ambitious target to generate Rs 1.2 lakh crore by divesting its shares in public sector undertakings.

(With inputs from IANS)