The Cabinet Committee on Economic Affairs (CCEA), on Thursday, approved the disinvestment in Steel Authority of India Limited (SAIL) to the tune of 10.82 per cent, a move likely to fetch around Rs.4,000 crore to the exchequer.
The CCEA, headed by Prime Minister Manmohan Singh, cleared the SAIL public offer, official sources said. A formal announcement in this regard is likely to be made on Friday.
The share sale process will be conducted through the auction route or offer for sale will get over Rs.4,000 crore to the government.
The Disinvestment Department will decide on the timing of the issue depending on market conditions. The government at present holds 85.82 per cent stake in SAIL. Shares of SAIL closed at Rs.93.10, down 0.16 per cent over the previous close.
Keywords: SAIL share, Cabinet Committee on Economic Affairs
Hope it will finally materialize. Unless IPOs and FPOs by public sector undertakings
are done expeditiously it remains pending for ever. Disinvestment being one of the
major planks of the government it is time that preparatory steps are taken for
public offers in a methodical manner with set timing for different offers. A time
table will be useful. It is not necessary to find the bull phase for making such
issues. Even if the subscribers benefit from a bear-type market it is after all part of
the game. Further, the tax payers of yesteryears had paid for by way of sacrifice
and if the present generation gets the benefit of it, it should be so. Wider
ownership of PSUs is essential as part of the ongoing process.
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