SAIL share sale subscribed 98%; govt raises Rs 1484 crore

NEW DELHI: State-owned steel major SAIL share sale issue was nearly fully subscribed as per provisional data available on the exchanges on Friday.

SAIL OFS got bids for 23.53 crore shares compared to 24.03 crore shares on offer as of 03:30 pm. The OFS was subscribed 97.90 per cent at an indicative bid price of Rs 63.07 per share.

SAIL closed 0.7 per cent lower at Rs 63.40. It has hit a record 4-year low of Rs 63.10 and a high of Rs 63.70 in trade today.

The government, which is selling its 5.82 per cent stake in the company, have raised about Rs 1,484 crore from the stake sale. The government currently holds 85.82 per cent stake in the company.

“The auction, if subscribed fully, would take the proceeds from disinvestment in this fiscal to at least Rs 23,800 crore, the highest ever realisation on disinvestment front in a single year,” PTI reported.

It would be, however, a tad less than the revised estimates of Rs 24,000 crore.

Shares of SAIL have been under pressure in the year 2013 and have already corrected nearly 30 per cent so far in the calendar year hit by weak demand for steel across the globe.

Along with weak demand, reduced infrastructure spending and abysmally low sales figures in the auto sector have affected demand for both long and flat steel.