The government on Thursday decided to sell 5.82 per cent stake in SAIL at a minimum price of Rs 63 apiece, a 1.41 per cent discount to closing price, to raise Rs 1,514 crore.
“The EGoM has set the floor price for SAIL stake sale at Rs 63 per share,” a top government official said.
Government will sell 24.03 crore shares or 5.82 per cent stake through Offer for Sale (OFS) on Friday.
In an unusual move, a high powered ministerial panel met for the second time in two days to deliberate on the pricing of the OFS as the stock slumped 8 per cent in past one week.
The Empowered Group of Ministers (EGoM), headed by Finance Minister P Chidambaram, is believed to have decided on Wednesday on the pricing of the issue and a formal announcement was expected after the close of market hours Thursday.
But departing from the practice followed in previous disinvestments, the panel again met apparently perturbed by the volatility in the stock.
Shares of SAIL closed at Rs 63.90, down 1.77 per cent on the BSE, trading at its four-year low level. The stock has lost more than 30 per cent since March last year.
“We need to keep market condition in mind,” SAIL Chairman C S Verma said after the EGoM meeting Thursday.
