SAIL share sale likely in early February, says Verma

NEW DELHI: Steel Authority of India's first phase of FPO, through which it expects to raise Rs 8,000 crore, is likely to hit the markets in early February, a top company official said today.

SAIL Chairman C S Verma told reporters here that its FPO is expected to be in "early February, may be in the second week of February".

The company has not yet filed the Draft Red Herring Prospectus (DRHP) for the planned follow-on-offer, he added.

The steel major plans to raise Rs 8,000 crore from the first phase of its 20 per cent share sale programme.

In the first phase, the government plans to divest 5 per cent of its stake in the company, while the steel giant would issue additional shares equivalent to a 5 per cent stake.

Another 10 per cent stake will be sold under the second phase of the FPO.

The two-phase FPO may help the company to raise a total of Rs 16,000 crore and the share sale proceeds would be primarily utilised to fund its expansion plans.

Presently, the government holds a stake of a little over 85 per cent in SAIL and post-FPO, its equity in the company is expected to go down to about 69 per cent.