Government to sell 10% stake in India’s largest public sector steel company

via a foGovernment to sell 10% stake in India’s largest public sector steel company, SAIL allow on public offer: DJ

As a part of its divestment programme, the government has announced that they would sell 10% stake in India’s largest public sector steel company, SAIL via a follow on public offer. It will also issue fresh shares, reports CNBC-TV18 quoting DowJones.

SAIL’s fresh shares are likely to be 10% of the expanded equity base and the government’s stake would now fall to 68% post the stake sale as against 85.8% earlier.

The cabinet had also announced a 5% divestment in NTPC now reducing the government’s stake to 84.5% from 89.5% earlier.

Another government owned power company, Rural Electrification Corporation (REC) too got approval from the government for its FPO.

Power Ministry said the REC FPO decision would happen by December and expect REC offer to hit market by March 2010. Satluj Vidyut Nigam’s IPO would be in next 90 days.

SAIL was trading at Rs 195.20, up 4.3%; NTPC was at Rs 215.90, up 1% and REC was at Rs 212, up just 0.24%.

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