|SAIL CMD CS Verma|
KICK-STARTING the process of five percent stake sale in government-owned steel major SAIL, the Disinvestment Department on June 23 held meeting with merchant bankers and steel ministry officials to move ahead with it. However, no time line has been decided as yet.
The sale of 5 percent stake or about 20.65 crore shares...at the current market price would fetch the government about Rs 1,900 crore. Currently, Centre owns 80 percent stake in Steel Authority of India Limited. A five percent dilution would help the government meet the minimum 25 percent public shareholding norm of market regulator Sebi.
In the interim Budget, the government budgeted to raise Rs 36,925 crore through stake sale in PSUs in the current fiscal.
SAIL, with a market capitalisation of over Rs 38,450 crore, would be among the biggest divestments.
The Cabinet under the previous United Progressive Alliance (UPA) government had nodded divestment of 10.82 percent stake in SAIL in 2012-13 fiscal.
The government had since appointed merchant bankers for the share sale: SBI Caps, Kotak Mahindra and Deutsche Bank.
Later it cut the size of stake sale to 5.82 per cent, thereby raising over Rs 1,500 crore in March 2013.
The Finance Ministry has already asked the Department of Disinvestment (DoD) to wrap up the home work for stake sales in the PSUs soon after the budget to take advantage of the bull phase in the stock market.
The DoD has already identified companies for stake sale. These include 10 percent in Coal India, 11.6 percent stake in NHPC and 5 percent each in REC and PFC.Besides, it will also go ahead with the long-pending sale of its residual stake in Hindustan Zinc and Balco.