New Delhi: Shares of steel major SAIL on Friday lost 1.25 percent on the BSE in early trade as government's 5.82 percent stake sale of the firm commenced on the bourses.
    
The floor, or the minimum offer, price for SAIL's share sale has been set at Rs 63 apiece, which was a 1.41 percent discount to on Thursday's closing price.
    
On the BSE, the company's scrip hit a low of Rs 63.10, down 1.25 percent over previous close, soon after the start of market hours. It continued to trade in the range of Rs 63.10-63.70 in the early minutes, which was higher than the base price.
    
At the floor price of Rs 63, a 5.82 percent stake sale in SAIL could garner around Rs 1,514 crore to the exchequer.     

The Empowered Group of Ministers (EGoM) on disinvestment, headed by Finance Minister P Chidambaram, on Thursday decided on pricing of 24.03 crore share or 5.82 percent stake sale of the country's largest steel producer through the Offer For Sale (OFS) route.
    
The auction, if subscribed fully, would take the proceeds from disinvestment in this fiscal to at least Rs 23,800 crore, the highest ever realisation on disinvestment front in a single year. It would be, however, a tad less than the revised estimates of Rs 24,000 crore.
     
SAIL stock has lost 8 percent in the last one week and over 30 percent since March last year.
     
The government currently holds 85.82 percent stake in the company. The Cabinet had in July last year approved a 10.82 percent stake sale of the steel major.
    
Merchant bankers for the share sale offer include SBI Caps, Kotak Mahindra and Deutsche Bank.
    
For the third quarter ended December 31, 2012, SAIL reported a 23 percent decline in net profit at Rs 484 crore from the year-ago period mainly due to lower net sales realisation amid subdued market conditions.
    
The steel major has a cash balance of over Rs 6,000 crore.

(Agencies)

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