The government is believed to have fixed Rs.66 per share as the floor price for selling 5.82 per cent stake in SAIL, truncating its original plan to offload 10.82 per cent in the steel major due to poor market conditions.
The issue, scheduled for Friday through the offer for sale (OFS) route, will be the second disinvestment this month where the government has truncated issue size fearing that adverse market conditions may not help it realise original targets.
The SAIL issue would fetch the exchequer about Rs.1,587 crore at Rs.66 apiece, if subscribed fully.
Official sources said the Empowered Group of Ministers (EGoM), which met in the morning, decided to fix the floor price of SAIL OFS at Rs.66 per share, which was 2.17 per cent higher than its Tuesday closing price. However, it trimmed the offer size to 5.82 per cent from the original plan of 10.82 per cent stake sale due to opposition from the Steel Ministry.
SAIL scrip has gone down by 32 per cent between April 1, 2012, and today [Wednesday], when it closed at Rs.65.05 on the Bombay Stock Exchange.