Agency reports indicate that the merchant bankers appointed for disinvestment in Steel Authority of India (SAIL) would get a clear idea on the financial health of the firm after it announces its December 2012 quarter results in a few days.
The government selected merchant bankers for SAIL share sale, including SBI Caps, Kotak Mahindra and Deutsche Bank. It plans to offload 10.82 per cent stake in SAIL. If the stake sale happens, the governmentÂ’s stake would come down to 75 per cent.
The department of disinvestment is exercising caution before selling the stake of the government in SAIL as earlier there were differences over valuation of the steel major.
It is learnt that going by the present market price of SAIL’s stock, the 10.82 per cent stake sale could fetch about Rs 4,000 crore to the exchequer.
Government officials have been meeting international investors and highlighting the Indian steel sectorÂ’s growth potential.
The Rs 30,000 crore disinvestment plan devised by the government for 2012-13 also includes stake sale in SAIL. So far, the government has raised over Rs 6,900 crore through minority stake sale in PSUs this fiscal.
The Cabinet Committee on Economic Affairs had in July last year approved 10.82 per cent disinvestment in SAIL out of governmentÂ’s 85.82 per cent shareholding through Offer of Sale (OFS) route.
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