New Delhi (Anish Yande): The Indian government is planning to sell its stakes in the Steel Authority of India. The government is planning to sell off up to 10 percent of its stake in SAIL. The floor price has been set at Rs 64 per share. The floor price is set at a discount of 13.6% compared to the closing price on Wednesday.
Govt to sell off up to 10 percent of SAIL stake:
Steel Authority of India is one of the leading steel manufacturers in India. The company was established in 1973, and SAIL operates in the metals sector.
The annual capacity of SAIL is producing more than 21 million tons per annum. The market capitalization of the Steel Authority of India is Rs 30,851.79 crore.
The Indian government has planned to sell 206.5 million shares of Steel Authority of India through an offer for sale. The government currently holds a 75 percent stake in the steel producer.
The proposed sale is an Offer for Sale for up to 20.65 crore shares in SAIL or 5 percent of total equity. The government has also opted to sell up to 20.65 crore shares. The Offer for Sale by the government would commence from Thursday for non-retail investors. Retail investors would be able to avail of the offer from Friday.
Quarterly results of SAIL:
Minimum 25 percent of the shares would be kept aside for insurance companies and mutual funds. Up to 12.5 percent of the shares would be reserved for retail investors through the offer for sale method. Except for mutual funds, investors would not be allocated more than 25 percent of the shares.
During the quarter ended on December 31, 2020, SAIL recorded growth in sales at 4.32 million tonnes of steel. The sales in the previous quarter were recorded at 4.21 million tonnes. In the first quarter of the previous year, 4.09 million tonnes in the previous quarter.
The company had a debt of Rs 52,290 crore on April 30, 2020. On December 31, 2020, the debt of SAIL was reduced to Rs 44,308 crore, a decrease of Rs 7,982 crore.
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