Centre Plans To Sell 5% Stake in SAIL, May Rake in Rs 1,000 Crore

New Delhi: The government is planning to sell a 5% stake in Steel Authority of India Ltd (SAIL) through an offer for sale, which could fetch about Rs 1,000 crore to the exchequer, an official said.

Officials from the Department of Investment and Public Asset Management (DIPAM) and steel ministry are planning roadshows in Singapore and Hong Kong for SAIL stake sale. However, the Hong Kong roadshow might be called off due to the coronavirus outbreak.

The government holds a 75% stake in SAIL. It had last sold a 5% stake in the steel CPSE in December 2014.

“We are looking at a 5% stake sale via offer for sale (OFS), but we will assess investor demand in the roadshows,” an official said.

At the current market price, the government may raise about Rs 1,000 crore by selling a 5% stake in the company. Shares of SAIL closed at Rs 48.65 apiece on Friday, down 0.51% over the previous close on the BSE.

[Coutesy: The Wire]