M A I N   N E W S

Govt clears disinvestment in SAIL

New Delhi, April 8
The government today approved disinvestment in Steel Authority of India Limited (SAIL) to mop up an estimated Rs 16,000 crore by selling its equity and issuing fresh shares to the public.

SAIL will be the first state-owned company to hit the capital market this fiscal as part of the ambitious disinvestment programme to raise the targeted Rs 40,000 crore.

As part of the proposal, which was approved by the Cabinet Committee on Economic Affairs (CCEA), SAIL will raise an additional 10 per cent of the paid-up equity and the government, on its part, will disinvest 10 per cent of its holding.

"This will be done in two tranches. In each tranche, there will a 5 per cent FPO (follow-on public offer) and 5 per cent sale of the government equity," Home Minister P Chidambaram said.

At current prices, it was expected that SAIL would get an additional capital of Rs 8,000 crore while the government would also get Rs 8,000 crore, he added. — PTI