Disinvestment drive: SAIL share offer subscribed more than two-times

Government's 5% stake sale in SAIL, for an estimated Rs 1,700 crore, generated a robust demand among investors with the offer getting subscribed more than two times today, kicking off its disinvestment drive on a high note.
The offer for 20.65 crore shares in the steel giant got bids for more than 41 crore shares, totalling over Rs 3,000 crore, while the portion reserved for small retail investors saw greater demand with nearly 2.6 times over-subscription.

More than two crore shares were reserved for retail investors, besides a 5% price discount for them. The overall Offer For Sale, for which floor price was fixed at Rs 83 per share, received total bids for 41.84 crore shares and was oversubscribed 2.03 times as on 3.25 PM, as per data available on the websites of BSE and NSE. The one-day OFS was scheduled to end at 3.30 PM and the final figures may change after adjustments.

This was the first PSU share sale undertaken by the new government, which targets to raise Rs 43,425 crore through selling stakes in various state-owned firms during the current fiscal. It is also the first disinvestment during the current fiscal.

The floor price of Rs 83 apiece was 2.75%  lower than Thursday's closing price. At the end of Friday's trade, SAIL shares closed 3% lower at Rs 82.80 at the BSE in the secondary market. At the floor price, a 5% stake or over 20.65 crore shares in SAIL could garner around Rs 1,714 crore to the exchequer, which is expecting a minimum amount of Rs 1,500 crore after taking into account the retail discount. The government currently holds 80% stake in the company, which will fall to 75%  after this offer.