The Government has fixed the floor price for a 5.82 per cent stake sale in Steel Authority of India (SAIL) at Rs 63, the company announced in a stock exchange announcement late Thursday. The stake sale will take place on March 22.
The offer shall take place on a separate window of the stock exchanges and commence at 9.15 am and close on the same day at 3.30 pm.
The government is offering 24,03,96,572 equity shares, with a face value of Rs. 10 each, for sale.
SAIL shares, which touched a 52-week low of Rs. 63.55 on the Bombay Stock Exchange, recovered marginally to close at Rs. 63.90, 1.77 per cent lower.
The merchant bankers for SAIL share sale include SBI Caps, Kotak Mahindra and Deutsche Bank.
For the third quarter ended December 31, 2012, SAIL reported a 23 per cent decline in net profit at Rs. 484 crore from the year-ago period, mainly due to lower net sales realisation amid subdued market conditions.
The share sale is part of the government's divestment drive to help restrict the fiscal deficit to 5.2 per cent in the year ending March 31, to avoid becoming the first of the BRIC economies to have its credit rating downgraded.
With inputs from Agencies
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