SAIL Share Sale to Hit Markets Between September 24, 26: Report

New Delhi: Disinvestment of a 5 per cent stake in state-run Steel Authority of India Ltd (SAIL) is likely to take place between September 24 and 26, a senior government official said on Tuesday.

The sale, of about 20.65 crore shares, at the current market price of Rs 77.15 apiece would fetch the exchequer around Rs 1,600 crore.

"The disinvestment is likely to happen any day between September 24 and September 26 through the OFS route," the official said, adding that roadshows for the share sale are already over.

Domestic roadshows for the issue were held in Mumbai and Chennai. Two teams were sent to meet overseas investors. While one visited London, New York and Boston, the other solicited participation of investors based in Singapore and Hong Kong.

Government would kick-start its ambitious disinvestment programme with SAIL. It is proposing to garner Rs 43,425 crore from share sale in the PSUs, of which about 30 per cent may come from a 5 per cent stake sale, worth Rs 18,000 crore, in ONGC.

Apart from SAIL, Coal India, NHPC, PFC and REC are on the block among others. The government has been using the OFS route for disinvestment of PSUs.

The Cabinet had in July 2012 approved a 10.82 per cent stake sale in the country's largest steel maker. Accordingly, the first tranche of disinvestment of 5.82 per cent was done in March 2013.

Retail investors would be offered an additional incentive of an increased investment quota as well as discount to the issue price, which would be announced a day before the OFS. The government might announce the issue date two days prior to the OFS.

Capital market regulator Securities and Exchange Board of India (Sebi) had in January, 2013 permitted the promoters of top 100 companies to use the auction route or OFS route to dilute stake in listed companies. It also permitted OFS in those PSUs which were to meet the minimum 25 per cent public holding norm.