Team News Riveting
New Delhi, January 14
The government’s sale of its 5 per cent shareholding in state-run Steel Authority of Indian Limited (SAIL) was over-subscribed by 3.6 times on the first day of its opening.
The two-day offer for sale (OFS) opened on Thursday.
According to reports, the government’s sale of its 5 per cent shareholding in India’s largest steelmaker SAIL was over-subscribed 3.6 times on the first day of its opening today. Seeing the overwhelming response, the government has decided to exercise the greenshoe option of another 20.65 crore shares or 5 per cent of the total equity.
It has an option to sell an additional 20.65 crore share of SAIL in case of over-subscription. The overall divestment, firm plus greenshoe, will total 10 per cent. A floor price of Rs 64 per share was set for the OFS. The OFS for non-retail investors opens on Thursday. Retail investors can bid on Friday.
The total OFS size was 20.6 crore shares of face value of Rs 10 each (base offer size), with an option to additionally sell up to 20.6 crore equity shares. With this, the total OFS goes up to 41.3 crore shares and government is expected to mobilise Rs 2,664 crore at a floor price of Rs 64 per share. Retail investors can bid on Friday.
Of the 20.65 crore shares on offer, 18.07 crore have been reserved for non-retail investors and 2.58 crore for retail investors.
