The government’s sale of its 5 per cent shareholding in Steel Authority of India Limited (SAIL) was oversubscribed 3.6 times on the first day of its opening on Thursday. The government has decided to exercise the greenshoe option of another 20.65 crore shares or 5 per cent of the total equity.
Issue subscribed 4.14 times of base size at a clearing price above the floor price by non-retail investors. Over 74.74 crore shares were sought by non-retail investors at the close of trading hours. Of the bids, 37.46 crores put in 100 per cent margin money.
The total OFS size was 20.6 crore shares of the face value of Rs 10 each 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 at a floor price of Rs 64 per share.
At least 12.5 per cent of the offer shares will be reserved for allocation to retail investors. he government is selling 20.65 crore shares or 5 per cent of the total equity of Steel Authority of India Limited through the offer for sale (OFS). It has an option to sell an additional 20.65 crore share of SAIL in case of over-subscription. The overall divestment, firm plus greenshoe, will total 10 per cent.