SAIL stake sale in this fiscal: Steel Min Virbhadra Singh

NEW DELHI: The government today said the disinvestment process in steel giant SAIL will start in the current fiscal. (Watch)

"The first phase of disinvestment will happen in the current fiscal," Steel Minister Virbhadra Singh told reporters here after a conference wherein trading firm MSTC presented a dividend of Rs 15.31 crore to the minister.

Singh has already approved a proposal for 20 per cent two-phase Follow-on-Public Offer (FPO) of SAIL. The next phase is likely the next fiscal, the minister said.

Giving details of divestment plans, Steel Secretary P K Rastogi said that the FPO will be a combination of five per cent dilution of government's equity and five per cent issue of additional shares by the company.

The government will mobilise around Rs 8,000 crore through the FPO at current share prices. The amount may vary depending on the share price of SAIL, he added.

Rastogi further said the proposal has got in-principle approval from the Disinvestment Department of the Finance Ministry and SAIL's board is now finalizing the proposal.

SAIL would be informing market regulator SEBI about the planned FPO. Once the regulator approval is obtained, the ministry will prepare a note to be sent to the Cabinet for its approval, which is likely by December.

SAIL, which will also raise about Rs 8,000 crore through two-pahse FPO, will use fund part finance its Rs 70,000-crore expansion projects.