Govt Will Sell SAIL To Private Investors; 5% Of India’s 3rd Biggest Steel Producer Will Fetch Rs 1000 Cr
Govt of India’s disinvestment ambitions are soaring, day after day.
After declaring 100% sale of Air India to private investors, and foreign investors, Govt. is now all set to sell SAIL to private entities.
SAIL is right now India’s 3rd biggest steel manufacturer, and world’s 13th biggest.
SAIL Will Go To Private Investors Now
Govt has announced that they will sell SAIL to private investors, and earn more money.
5% stake in SAIL, which is one of the leading Central Public Sector Enterprises (CPSE) will fetch Rs 1000 crore for Govt.
Govt. has 75% stake in SAIL, and in 2014 too, they sold 5% stake in SAIL to private investors.
The sale will be through open offer sale, and this means any private investor can buy a stake in SAIL now.
Infact, Officials from the Department of Investment and Public Asset Management (DIPAM) and steel ministry are planning to conduct roadshows in markets like Singapore and Hong Kong to trigger more curiosity among investors.
However, due to CoronaVirus spread, roadshows in Hong Kong has been canceled as of now.
An unnamed official said, “We are looking at a 5% stake sale via offer for sale (OFS), but we will assess investor demand in the roadshows,”
As the news of SAIL’s further disinvestment came in, share prices of SAIL received a beating.
At the time of writing, SAIL’s shares was trading at Rs 46.05, which is 5.4% down compared to last trading day.
Have the investors rejected the idea of disinvestment in SAIL?
Govt’s Aggresive Disinvestment Move
For this fiscal year, Govt. has earmarked to generate revenues of Rs 65,000 crore via disinvesting in public sector units like Air India, SAIL, BHEL and more.
As of now, Rs 34,000 crore has been generated via disinvestment, and remaining Rs 31,000 crore is expected to come in by March, 2020.
For the next financial year, Govt. has set a target of Rs 1.2 lakh crore revenues via selling stakes in public sector units.
We will keep you updated, as more details come in.