SAIL divestment only awaits final cabinet nod
24 Oct 2009
The finance ministry has approved follow-on public offers (FPOs) by the state-owned Steel Authority of India Ltd to the extent of 20 per cent of its paid up capital, including 10 per cent disinvestment of the government stake, the firm informed the stock exchanges on Friday.
The timing and the final structure of the offer would be clear only after final approval from the union cabinet, it added.
''The ministry of steel has communicated to the company 'in principle' approval of the department of disinvestment for further public offer equivalent to 10 per cent of existing paid-up equity capital by SAIL as well as disinvestment of equivalent size of equity held by the government in two discrete tranches,'' the company said in a filing to the BSE.
Each of the two public issues will comprise 5 per cent sale of new shares and 5 per cent of the government's stake in the company, SAIL stated. The government holds 86 per cent of the company.
The government had given an in-principle nod for the stake sale earlier this week. (See: Government to sell 20 per cent equity stake in SAIL)
But the company has to wait for approval from the cabinet committee on economic affairs. ''After approval of CCEA, the timing for the above offers would be decided considering, inter-alia, SEBI (Securities and Exchange Board of India) norms and prevailing market considerations,'' SAIL said.
