SAIL climbs 7% on strong OFS response

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SAIL climbs 7% on strong OFS response


NEW DELHI: Shares of SAIL climbed 7 per cent in an otherwise weak session on Friday after the steelmaker’s offer for sale (OFS) received strong response from non-retail investors. The OFS was subscribed 4.14 times on the first day of the issue.

Seeing strong response to the issue, the government decided to exercise the green shoe option of offloading another 5 per cent stake in the state-run company.

Following the development, the stock rose 7.28 per cent to hit a high of Rs 72.15 on BSE. The bids from retail investors opened on Friday. As per BSE, the retail portion was subscribed 38.72 per cent or 9,995,631 shares out of 25,815,783 offer size.

Taking to Twitter, Tuhin Kanta Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM), said that the government has decided to exercise the green shoe option and retail investors will be able to bid on Friday. On Thursday, the issue was open for non-retail investors.

“Offer for Sale of Govt shares in SAIL got a great response on day one. Issue subscribed 4.14 times of base size at a clearing price above the floor price by non-retail investors. Govt has decided to exercise the green shoe option,” he tweeted.

On Wednesday, the Secretary said that the Centre will sell up to 10 per cent stake in the steel PSU through OFS.





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