Govt may fast-track SAIL issue

8220;SAIL disinvestment will be on the fast-track basis,8221; a senior finance ministry official said. He further said the government will this week or by the next,invite applications for book running lead managers for the offer.

According to Disinvestment Secretary Sumit Bose,SAIL is one of the many public sector companies identified by the government for stake dilution to raise Rs 40,000 crore to help arrest the widening fiscal deficit.

The others are Coal India,Hindustan Copper,Power Grid and Manganese Ore India. Divestment in Satluj Jal Vidyut Nigam is already complete,while that of Engineers India is on.

Through SJVNL,the government raised over Rs 1,000 crore,while EIL could fetch nearly Rs 977 crore.

The government in 2009-10 had raised Rs 25,000 crore through divestment in Oil India,NMDC,REC and NTPC.

Under the fast-track route,a company can proceed with the FPO by filing a copy of the prospectus with the RoC or the letter of offer with Sebi and stock exchanges. Such companies are not required to file draft offer document for comments from the market regulator and stock exchanges.

The government had cleared a proposal to sell 20 per cent equity in SAIL,the country8217;s largest steel-maker,in April.

The government holds a little over 85 per cent in SAIL,which will go down to about 69 per cent post-FPO.

Steel Minister Virbhadra Singh had recently said the FPO could generate Rs 16,000 crore.

SAIL shares were trading at Rs 204.4,down 1.83 per cent on the Bombay Stock Exchange.