Undeterred by the lukewarm response to NTPC’s stake sale, the Union Steel Ministry on Wednesday said it would send within 10 days to the Union Cabinet the proposal for the 20-per cent share sale in Steel Authority of India Ltd. (SAIL).
“We will send the 20-per cent follow-on public offer (FPO) proposal of SAIL to the Union Cabinet within the next 10 days,” Steel Secretary Atul Chaturvedi told reporters here on the sidelines of the Mining and Steel summit organised by the Indian Chambers of Commerce. The government owns a little over 85 per cent stake in SAIL and is planning to sell 10 per cent of its holding in two phases.
The share-sale proposal, which will also see the company raise 10 per cent fresh equity, is expected to fetch the government and the firm around Rs. 9,000 crore each, based on the current share price.
The final amount would, however, depend on the issue price. The FPO, which awaits government clearance, will come up in the next financial year only.
Recently, SAIL Chairman and Managing Director S. K. Roongta said that the process for stake sale would start once the government gave the green signal.
“We are ready with our preparation in this regard,” he said.