New Delhi, July 20 (IANS) The government has decided to sell through auction 10.82 percent stake in the Steel Authority of India Limited (SAIL), which is estimated to fetch over Rs.4,000 crore to the exchequer, at current market prices.
The proposed sale is part of the government's target to raise Rs.30,000 crore through disinvestment in public sector firms.
The decision to sell the stake was taken by the Cabinet Committee on Economic Affairs, chaired by Prime Minister Manmohan Singh, Thursday evening.
The government currently holds 85.82 percent stake in SAIL, the largest domestic steel producing firm.
"After this disinvestment, the government of India shareholding in the company would come down to 75 percent," according to an official statement released Friday.
The government will offload its equity in the company through an "offer of sale of shares" through stock exchanges as per the Securities and Exchange Board of India (SEBI) rules and regulations.
The share price of SAIL closed 0.05 percent higher at Rs.93.35 at the Bombay Stock Exchange (BSE) Friday. The scrip touched a high of Rs.95.05 in the intra-day.
The paid up equity capital of SAIL, a listed Maharatna Central Public Sector Enterprise, was Rs.4,130.53 crore as on March 31, 2012.
In order to raise the targeted amount of Rs.30,000 crore, the government also plans to divest its stake in the companies like Oil India, National Aluminium Company, Hindustan Aeronautics, Bharat Heavy Electricals Ltd and Hindustan Copper in the current financial year.
For fiscal 2011-12, the government had set a target of Rs.40,000 crore mop up through disinvestment in state-run firms, but it had substantially fallen short of that.