Government sells 10% stake in SAIL, stock drops 8%

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The government has set the floor price for the proposed sale of SAIL shares at Rs 64 per share.

The government has decided to sell up to 20.65 crore of shares or 5% of the total capital of Steel Authority of India Limited (SAIL) through an offer to sell (OFS), the company said on Wednesday in a regulatory filing. The center also has a greenhoe option to sell an additional 20.65 crore in the business.

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The government has set the floor price for the proposed sale of shares at Rs 64 per share. The OFS for non-retail investors will open on Thursday and the OFS for retail investors will start on Friday.

At least 12.5% ​​of the shares offered will be reserved for retail investors and at least 25% of the shares will be reserved for mutual funds and insurance companies, the company said. No single bidder other than mutual funds registered with SEBI will be awarded more than 25 percent of the shares.

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SAIL is India’s largest steel producer, with an annual capacity of approximately 21 million tonnes per year (MTPA). The government owns 75 percent of the steel major.

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At 10 a.m., SAIL shares were trading down 8.4 percent at Rs 68.40 on BSE. The BSE Sensex was at 49,342.90, down 146.25 points or 0.28 percent and the NSE Nifty was at 14,525.45, down 39.65 points or 0.29 percent.

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