SAIL signs MoU with BHP to support steelmaking decarbonisation
The Steel Authority of India Limited (SAIL) signed an MoU with the leading global resources company, BHP to support steelmaking decarbonisation.
The government’s sale of its 5 per cent shareholding in steelmaker SAIL was oversubscribed by over four times on the first day of the issue.
Taking to Twitter, Tuhin Kanta Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM), said that the government has decided to exercise the greenshoe 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 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 greenshoe option. Retail investors get chance to bid tomorrow,” he tweeted.
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The two-day offer for sale (OFS) opened on Thursday.
The total OFS size was 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 government is expected to mobilise Rs 2,664 crore at a floor price of Rs 64 per share.
Retail investors can bid on Friday.
Of the 20.65 crore shares on offer, 18.07 crore have been reserved for non-retail investors and 2.58 crore for retail investors.
The indicative price of bids that came in on Thursday was Rs 65.49, exchange data showed. SAIL closed nearly 10 per cent down on the BSE at Rs 67.25.
At least 12.5 per cent of the offer shares will be reserved for allocation to retail investors.
No single bidder other than mutual funds registered with the Securities and Exchange Board of India (Sebi) will be allocated over 25 per cent of the shares on offer, according to the terms of OFS.
A minimum of 25 per cent of shares will be reserved for mutual funds and insurance companies.
On Wednesday, the Secretary said that the Centre will sell up to 10 per cent stake in the steel PSU through OFS.
Shares of the company plunged 10 per cent during the day. On the BSE, its shares closed at Rs 67.25, lower by Rs 7.45 or 9.97 per cent from its previous close.
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