CCEA to take call on SAIL stake sale today

Even as volatile bourses may be scaring away even the bravest of investors,it has failed to dishearten the government,which seems determined to revive its disinvestment programme

Even as volatile bourses may be scaring away even the bravest of investors,it has failed to dishearten the government,which seems determined to revive its disinvestment programme.

Accordingly,a proposal to divest 10.82 per cent stake in state-owned steelmaker SAIL through a follow-on public offer (FPO) has been listed on the agenda for the meeting of the Cabinet Committee of Economic Affairs (CCEA) on Thursday.

But as reported by The Indian Express earlier,the department of disinvestment has opted to use the offer for sale or auction method for divesting stake in SAIL. The proposal is on the CCEAs agenda. But the finance ministry has not given a time frame for the disinvestment in an indication that they will wait for market conditions to improve, a senior government official said.

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The government currently holds 85.82 per cent in the countrys largest steel maker. The proposed FPO could fetch as much as Rs 4,000 crore to the government,which is hoping to meet the budgeted disinvestment target of Rs 30,000 crore for this fiscal.

Disinvestment in SAIL has been on the governments agenda since April 2010,when the CCEA had approved a 10 per cent stake sale along with issue of 10 per cent fresh equity in two equal tranches. SAIL scrips settled at Rs 93.15 on Wednesday at the BSE,down 0.53 per cent from the previous closing.

Earlier this year,the company chose to opt out of the FPO plan for reasons such as market volatility and issues relating to selection of merchant bankers.

Sources in the LJP (RV) said the names of the remaining 15 candidates would also be announced very soon.

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