Govt clears divestment in SAIL; to fetch Rs 16,000 crore

New Delhi, Apr 8 (PTI) The government on Thursday
approved a 20 per cent disinvestment in Steel Authority of
India Ltd that would fetch a total of Rs 16,000 crore.
Following the two-tranche disinvestment, the government
and the company would get Rs 8,000 crore each, Home Minister P
Chidambaram told reporters after a meeting of the Cabinet
Committee on Economic Affairs.
Post disinvestment, the government's equity will fall to
69 per cent from 85.82 per cent currently.
The stake sale will take place in two tranches of 10
per cent each, Chidambaram said, adding that each time 5 per
cent will be through further public offer (FPO) and another 5
per cent through sale of government equity.
SAIL shares were trading at Rs 248.25, down by 2.67 per
cent on the BSE. PTI RKL
KAB