The government has decided to divest 5.82% of its equity in Steel Authority of India (SAIL) at a floor price of Rs 63 per share. At this price, the government is expected to raise a sum of around Rs 1,514.5 crore, thereby taking its total income through disinvestment during 2012-13 at around Rs 23,900 crore, which is almost near to its revised divestment target of Rs 24,000 crore as against Rs 30,000 crore as proposed in last year’s Budget.
Meanwhile, the fixed floor price is 1.40% less than the Thursday’s close price of Rs 63.90. The stake sell has already begun on the bourses. The Empowered Group of Ministers (EGoM) on disinvestment, headed by finance minister P Chidambaram, on Thursday decided on pricing of 24.03 crore share of the country's largest steel producer through the offer for sale (OFS) route.
