Mumbai, March 21: Aiming to raise a minimum Rs 1,514 crore by selling a 5.82 per cent stake in Steel Authority of India Ltd (SAIL), the government today set the floor price at Rs 63 apiece for the auction of shares starting tomorrow.
The offer price is at a discount of 1.41 per cent over Rs Rs 63.90 — today’s closing price of SAIL on the Bombay Stock Exchange.
“The EGoM (empowered group of ministers) has set the floor price for SAIL stake sale at Rs 63 per share,” a top government official said.
The government will sell 24.03 crore shares, or a 5.82 per cent stake, through the offer for sale (OFS).
The ministerial panel, which met yesterday, went into a huddle again today to deliberate on the pricing of the OFS as the stock slumped 8 per cent in the past one week.
Shares of SAIL closed at Rs 63.90, down 1.77 per cent on the BSE, trading at its four-year low level. The stock has lost more than 30 per cent since March last year.
“We need to keep the market condition in mind,” SAIL chairman C.S. Verma said after the EGoM meeting today.
The government currently holds an 85.82 per cent stake in SAIL.