Disinvestment in steel giant SAIL seems to be the next in stake sale in PSUs with the government considering a two phase follow on public offer of the Navratna firm which will fetch the Centre over INR 8,000 crore at current share prices.
A senior steel ministry official said that the 20% FPO will be a combination of five per cent dilution of government's equity and five per cent issue of additional shares in each phase.
The official added that “Steel minister Mr Virbhadra Singh has already approved the proposal, which has also got in-principle approval of the Disinvestment Department of the Finance Ministry. Now, SAIL is finalizing the document which will be presented in its board meeting this week.”
The official further added that “SAIL will then inform SEBI about the move and after that the ministry will prepare a note to be sent to the Cabinet for its approval, likely by December.”
Going by the current market value of SAIL, offloading 10% will fetch over INR 8,000 crore. Since the FPO is mix of government’s stake and issue of fresh equity by the company, the share of the Centre and firm will be INR 4,000 crore each.
(Sourced from http://www.steelguru.com/news/index/2009/10/22/MTE2OTY4/SAIL_divestment_next_in_line_-_Report.html)
Wednesday, October 21, 2009
SAIL divestment next in line - Report
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