The government currently holds a 75 percent stake in SAIL. The government had earlier sold a five percent stake in SAIL in December 2014.
The central government is planning to raise one thousand crore rupees by selling five percent stake of Steel Authority of India. Officials from the Department of Investment and Public Asset Management and the Ministry of Steel are preparing to hold road shows in Singapore and Hong Kong for the sale of SAIL’s stake. However, the Hong Kong roadshow can be canceled in view of the corona virus infection.
The government currently holds a 75 percent stake in SAIL. The government had earlier sold a five percent stake in SAIL in December 2014. “We are planning to sell a five per cent stake in SAIL through an open offer,” said an official. We will evaluate the interest of investors in the roadshow. “At the current market rate, the government can raise about one thousand crore rupees by selling five per cent stake in SAIL.”
SAIL shares fell 0.51 percent to close at Rs 48.65 on the Bombay Stock Exchange on Friday. The government can complete this sale in this financial year, as it is making all efforts to achieve the revised target of disinvestment of 65 thousand crore rupees. So far, only 34 thousand crore rupees have been raised from disinvestment in this financial year. The government is also planning to sell a 10 percent stake in Garden Rich Ship Builders and Engineers Limited. With this, the government can get around 200 crores.
Earlier, the government has announced to dilute its stake in Life Insurance Corporation of India, which is said to be a symbol of trust. This stake will not be more than 10% of the total cost of LIC in any case. However, LIC’s employee organizations have opposed this. He says that this decision of the government is against the employees and the general public. Employee organizations have also gone on strike regarding this.