SAIL drops 5% as govt mulls stake sale via OFS

NEW DELHI: Shares of SAIL fell 5 per cent in Monday’s trade on reports the government is planning to sell 5 per cent stake in the PSU firm through an offer for sale (OFS).

The issue could fetch Rs 1,000 crore to the exchequer, an official told PTI.

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 coronavirus outbreak, PTI reported.

As of December 31, the government held 75 per cent stake in SAIL. It had last sold 5 per cent stake in the steel CPSE in December 2014.

"We are looking at a 5 per cent stake sale via offer for sale (OFS), but we will assess investor demand in the roadshows," an official told PTI.

The government may look at completing the transaction in the current fiscal as it strives to achieve the Rs 65,000 crore disinvestment target set in the revised estimates.

The government has raised Rs 34,000 crore from CPSE stake sale so far in the ongoing calendar and is still short of Rs 31,000 crore to meet the revised divestment target of Rs 65,000 crore.

For FY21, the government has budgeted to collect Rs 1.20 lakh crore from CPSE stake sale.

The shares of the company closed 5.45 per cent lower at Rs 46 on BSE.