SAIL share price plummets over 9 per cent on GoI stake sale plans
The share price of Steel Authority of India (SAIL) slumped more than 9 per cent on January 14, a day after the government decided to sell up to 10 per cent stake in the company.
The government on January 13, 2021, confirmed the opening of offer for sale (OFS) in SAIL for retail and non-retail investors on January 15. Along with this, the government would also divest 5 per cent equity in the firm with a 5 per cent greenshoe option.
According to the Ministry of Steel, the OFS has a floor price of Rs 64 per share with a size of 41,30,52,528 shares, which is approximately Rs 2,664 crore.
The sell-off in the blue-chip steel major during a phase of a commodity cycle where steel prices are rising is seen as a way of raising some money ahead of the budget. The government has also lined up Rs 4,600-crore initial public offering of the Indian Railway Finance Corporation (IRFC), a state-run railway financing arm.
Meanwhile, the company’s stock was trading at Rs 67.50, down by 9.64 per cent during the second half of Thursday’s trading session on BSE.