The Centre is likely to auction 10.82 per cent stake in Steel Authority of India Ltd on March 20 as a part of disinvestment programme before the end of the financial year.
In its recent stepped up efforts towards disinvestment process, the Government of India has also planned overseas road shows to attract qualified institutional investors. A couple of official teams would visit the US, the UK, Singapore and Hong Kong markets this week for pre-bid road shows, sources in the Ministry of Steel told Business Line .
The Empowered Group of Minister (EGoM) may take a final call on the floor price on March 18 for the one-day share sale. Barely a few weeks away from the end of the financial year, aiming to bridge the Rs 8,500-crore shortfall in reaching the 2012-13 PSU sell-off target of Rs 30,000 crore, the Government has decided to opt for the stock exchange-hosted auctions to save on time.
On Monday, the SAIL stock declined 4.5 per cent to finish at Rs 68.35 on the BSE. Today’s close is lower than the Rs 69 level in October when sell-off was deferred on “low” market sentiment.
The Government aims to raise around Rs 3,500 crore. Steel Ministry sources said last month that efforts were renewed for bridging the gap in a short span of time. The Government of India currently holds 85.82 per cent stake in SAIL.