New Delhi: The Union government has garnered Rs 1,715 crore from sale of its 5 per cent stake in steel giant SAIL. The government's 5 per cent share has been sold at a floor price of Rs 83 per share.
The sale of 5 peer cent stake in SAIL is only a part of the government's divestment plan. The NDA government's disinvestment plans also include 5 per cent stake sale in ONGC, 10 per cent in Coal India and 11.36 per cent in NHPC.
Government's stake in SAIL will come down to 75 per cent pursuant to this public issue, helping the company to meet Sebi's listing norms.
The offering for SAIL shares also received a robust response from retail investors, to whom the government has offered a five per cent price discount and has reserved 10 per cent or over 2 crore shares for them. 2.06 crore shares, or 10 per cent, which were earmarked for retail investors were subscribed 2.66 times, while the general category shares were subscribed 2.01 times, according to BSE data.
"Retail investors category was... hugely oversubscribed more than 2.5 times, a record for any retail participation in any OFS," the statement added. A successful start to the ambitious disinvestment programme will help government contain the fiscal deficit to 4.1 per cent of the GDP in the current financial year.
Government has lined up a host of PSUs to pare holdings. The disinvestment plan includes 5 per cent stake sale in ONGC, 10 per cent in Coal India and 11.36 per cent in NHPC. SAIL is probably the first OFS in which stock exchanges are showing retail and general category subscription with their respective indicative price separately.
The Union Cabinet had in July 2012 approved a 10.82 per cent stake sale in SAIL. Accordingly, the first tranche of disinvestment of 5.82 per cent was completed in March 2013.
(With inputs from PTI)
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