The floor price for SAIL OFS was set at Rs 64 per share, which was at 14.32 per cent discount to Wednesday’s closing price of Rs 74.70.
Following the development, the stock fell 9.5 per cent to hit a low of Rs 67.60 on BSE.
Only non-retail investors can participate in the OFS on Thursday. Retail investors could participate in the offer on Friday. In the offer, the government would divest 5 per cent equity, with a 5 per cent greenshoe option.
At present, the government holds 75 per cent stake in SAIL. It had last sold 5 per cent stake in the steel CPSE in December 2014. The total OFS size has been calculated at 20.6 crore shares of face value of Rs 10 each (base offer size), with an option to additionally sell up to 20.6 crore equity shares.
With this, the total OFS goes up to 41.3 crore shares and the government is expected to mobilise Rs 2,664 crore.
This may help to bridge the government’s ambitious target of Rs 2.1 lakh crore through divestment in the current financial year. This includes Rs 1.20 lakh crore through CPSE stake sales, and the remaining Rs 90,000 crore from financial institutions.