Steel Authority of India (SAIL) share price fell over 8 percent in the morning on January 14, a day after the government decided to sell up to 10 percent stake in the company.
The government on January 13 confirmed the opening of Offer for Sale (OFS) in SAIL for retail and non-retail investors. The department of investment and asset management (DIPAM) secretary tweeted the OFS in SAIL would open for non-retail investors on January 14 and for retail investors on January 15. With this, the government would divest 5 percent equity in the firm with a 5 percent greenshoe option.
According to the details shared by the ministry of steel, the floor price for SAIL OFS has been set at Rs 64 per equity share. The total OFS size has been calculated at 206,526,264 equity shares of the face value of Rs 10 each (Base Offer Size), with an option to additionally sell up to 206,526,264 equity shares of the firm (over-subscription option). The OFS size stands at 413,052,528 shares, which is calculated at Rs 2,664 crore.
The stock was trading at Rs 68.40, down Rs 6.30, or 8.43 percent, at 1006 hours. It has touched an intraday high of Rs 69.20 and an intraday low of Rs 67.60.
SAIL has chosen DAM Capital Advisors Limited (formerly known as IDFC) and ICICI Securities Limited as brokers. DAM Capital Advisors Limited will act as the settlement broker.