Thursday, 4 December 2014

India Starts Rs 58,000 Cr Disinvestment Programme

The government will kick off its Rs 58,000-crore disinvestment programme for 2014-15 Friday, with dilution of a 5% stake in Steel Authority of India Ltd (SAIL).

The floor price for disinvestment in SAIL will be set at Rs 83 a share, slightly lower than its closing price of Rs 83.35 on the BSE on Thursday, according to an exchange filing.

The new norms issued by the Securities and Exchange Board of India (Sebi) earlier this week, to allow retail investors to apply at the cut-off price, will not be applicable for the SAIL offering, said a banker handling the issue.

Investors participating in the offer-for-sale (OFS) will have to bid above Rs 83 per share. The allotment will happen on a price priority basis. Which means investors who bid higher will get the allotment. In case of oversubscription, allotment will be made on a time priority basis if the bidding price is the same.

Apart from SAIL, finance ministry officials are confident that Coal India, ONGC, and NHPC will hit the market by the end of January. At current prices, the combined proceeds from these four public sector behemoths will be around Rs 42,911 crore.


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