The Central government will sell up to 10% equity in Steel Authority of India (SAIL) through an offer for sale slated for January 14 and January 15, reports said.
The government will sell 5% equity with the option to sell further equity of 5% in case of an over-subscription, Economic Times reported.
In a regulatory filing on Wednesday, the government said it will sell up to 20.65 crore shares or 5% of the total equity in the central public sector enterprise.
The department of investment and asset management (DIPAM) secretary said on Wednesday that the OFS in SAIL would open for non-retail investors on January 14 and for retail investors on January 15.
The government holds 75 per cent stake in SAIL, India's largest steel producer with an annual capacity of about 21 million tonne per annum (MTPA). It had last sold 5% stake in the steel CPSE in December 2014.
The floor price for SAIL OFS has been set at Rs 64 per equity share for 206,526,264 equity shares with an option to additionally sell an equal number of equity shares in the case of overs subscription. The government plans to raise up to Rs 2,664 crore with the equity sale.
The SAIL shares fell over 7% on Thursday and were trading at Rs 69.35, a fall of Rs 5.35 (7.16%), at 11:30 am.
The government had announced the plan to sell 5% stake in SAIL through an offer for sale to raise Rs 1,000 crore in February last year but the plan was shelved after COVID-19 outbreak.