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Govt aims upto Rs 35 bn from stake sale in SAIL

Govt aims upto Rs 35 bn from stake sale in SAIL

Before the end of the financial year 2012-13, the government plans to offload 10.82 per cent of its stake in state-owned Steel Authority of India (SAIL) and garner Rs 2,700-3,500 crore.

The department of disinvestment (DoD) in holding discussions with the steel ministry on this matter and soon a decision is likely to be taken, reports indicate.

At the current market price of Rs 78 per SAIL share, the stake sale could fetch around Rs 3,400 crore to the exchequer.

Divestment of its stake in SAIL would enable the firm in achieving the Rs 30,000-crore disinvestment target for 2012-13.

The DoD is already planning roadshows in Singapore, Hong Kong, US, UK and continental Europe for the proposed SAIL disinvestment.

The DoD has reportedly suggested the steel ministry to begin the process of roadshows from the last week of February so as to be prepared with the stake sale process by end March.

The government managed to mop up Rs 21,500 crore through PSU stake sales so far in 2012-13, against the Budget target of Rs 30,000 crore.

During October-December 2012, the net profit of SAIL declined 23 per cent to Rs 484 crore because of lower net sales realisation amid subdued market conditions.

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