Government's move to sell 20 per cent in SAIL sparks protests
30 Jul 2010
Employee unions are opposed to the government's plan to sell 20 per cent of equity in state-owned Steel Authority of India (SAIL) minister of state in the ministry of steel A Sai Prathap informed the Rajya Sabha today.
The government expects to raise over Rs16,000 crore from the sale of a 20 per cent equity in SAIL.
The government is planning to sell 10 per cent of its holding in SAIL and raise an additional 10 per cent in equity, Sai Prathap informed the Rajya Sabha in a written reply today.
He said some of the unions had resorted to distribution of pamphlets and also staged demonstrations protesting against the decision regarding disinvestment of SAIL.
The minister did not give the scheduled time or other details of the proposal. He merely said the equity sale would be at an appropriate time, depending on the prevailing market conditions and in accordance with SEBI guidelines.
The actual amount that would be raised through disinvestment as well as from further public offer would depend upon a number of factors, including the prevailing market conditions, pricing of the shares and investors' interest, he said.