Govt planning to divest 20% stake in SAIL

by khalid on 21/11/2009 · 0 comments

sail

The government is planning to divest its stake by 20% in SAIL and this will be in two steps of 10% each in coming months. The proceeds of this proposed isssue, which would be around Rs 70000 crore will be utilized in expansion of the company. The proposal for raising additional equity of 10% of the paid-up capital and disinvestment of a portion of the government of India’s holding up to 10% of the paid-up capital in two equal tranches is proposed.

It is expected that the 10% stake sale would come next month, which would include sale of 5% government holding and issuing 5% additional equity too.

SAIL is expanding its annual production capacity from about 14 million tonne at present to around 23 million tonne by 2012.

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