Govt set to throw away 10.8% stake in SAIL by March-end
18 Feb 2013 7:12 AM IST
The government is eyeing around Rs 3,500 crore through stake sale in SAIL by March end to reach close to the Rs 30,000-crore disinvestment target for the current financial year.
'SAIL stake sale is very much in our domain for the current fiscal. The Department of Disinvestment (DoD) is in talks with the Steel Ministry on how to go about it. We are looking to raise somewhere between Rs 2,700-3,500 crore,' official sources said.
The Department of Disinvestment is already planning roadshows in Singapore, Hong Kong, US, UK and continental Europe for the proposed SAIL disinvestment.
Sources said the DoD has communicated to the administrative ministry that the process of roadshows can be commenced from the last week of February so as to be prepared with the stake sale process by end March.
So far this fiscal, the government has raised Rs 21,500 crore through PSU stake sales, against the Budget target of Rs 30,000 crore. DoD Secretary Ravi Mathur had earlier said the government would raise around Rs 27,000 crore.
The government is planning to sell 10.82 per cent of its stake in state-owned Steel Authority of India (SAIL). At the current market price of Rs 78 per SAIL share, the stake sale could fetch around Rs 3,400 crore to the exchequer.
For the third quarter ended 31 December 2012, SAIL reported a 23 per cent decline in net profit at Rs 484 crore mainly due to lower net sales realisation amid subdued market conditions.
'SAIL financial results are on expected lines. We are thinking of doing the stake sale in the second half of March,' sources said.
The merchant bankers for SAIL share sale include SBI Caps, Kotak Mahindra and Deutsche Bank. Post stake sale, the government's stake would come down to 75 per cent.There have been apprehensions that government might defer stake sale in SAIL to next fiscal owing to tepid financial results and bleak performance of the steel sector.
However, sources said the sale is unlikely to be deferred as the government is trying hard to achieve the disinvestment target to restrict fiscal deficit at 5.3 per cent of GDP this financial year.The Cabinet Committee on Economic Affairs had in July last year approved 10.82 per cent disinvestment in SAIL out of government's 85.82 per cent stake, through the Offer of Sale (OFS) route.
However, it could not be taken forward amidst the subdued market conditions. The government has kept the issue on hold anticipating buoyancy in the market to return. SAIL shares have not been part of the market rally during 2012. The stock which touched a 52-week high of Rs 115.90 on 17 February 2012, fell to its 52-week low of Rs 75.80 on 5 September 2012.
GUJARAT NRE COKING COAL BOARD OPPOSES JSPL’S TAKEOVER BID
The board of Gujarat NRE Coking Coal has advised company shareholders to reject Jindal Steel and Power’s all-cash AUD 221.61 million (Rs 1,200 crore) takeover bid, saying the offer does not adequately reflect future prospects.
‘Your Directors unanimously recommend that you reject the Jindal offer,’ Gujarat NRE Coking Coal Executive Chairman Arun Kumar Jagatramka said in a statement.
Jindal Steel and Power (JSPL), which holds 19.48 per cent stake in Gujarat NRE Coking Coal, made the offer on 31 January. Gujarat NRE Coking Coal is Australian subsidiary of Kolkata-based Gujarat NRE Coke. JSPL also has a coking coal supply agreement with Gujarat NRE Coking Coal.
Gujarat NRE Coking Coal has two producing coking coal mines in Australia, which are estimated to have reserves of 125 million tonnes (MT) and resources of 651 MT. The offer, launched on 15 February through Australian Securities Exchange (ASX), has valued Gujarat NRE Coking Coal’s shares at Australian dollars (AUD) 0.20 apiece.
The offer remains open till 15 March.‘The Offer undervalues your Gujarat (NRE Coking Coal’s) shares and does not adequately reflect company’s future prospects. The Directors and major shareholders who control approximately 64.1 per cent of the company shares outstanding intend to reject the offer,’ the company said.
'SAIL stake sale is very much in our domain for the current fiscal. The Department of Disinvestment (DoD) is in talks with the Steel Ministry on how to go about it. We are looking to raise somewhere between Rs 2,700-3,500 crore,' official sources said.
The Department of Disinvestment is already planning roadshows in Singapore, Hong Kong, US, UK and continental Europe for the proposed SAIL disinvestment.
Sources said the DoD has communicated to the administrative ministry that the process of roadshows can be commenced from the last week of February so as to be prepared with the stake sale process by end March.
So far this fiscal, the government has raised Rs 21,500 crore through PSU stake sales, against the Budget target of Rs 30,000 crore. DoD Secretary Ravi Mathur had earlier said the government would raise around Rs 27,000 crore.
The government is planning to sell 10.82 per cent of its stake in state-owned Steel Authority of India (SAIL). At the current market price of Rs 78 per SAIL share, the stake sale could fetch around Rs 3,400 crore to the exchequer.
For the third quarter ended 31 December 2012, SAIL reported a 23 per cent decline in net profit at Rs 484 crore mainly due to lower net sales realisation amid subdued market conditions.
'SAIL financial results are on expected lines. We are thinking of doing the stake sale in the second half of March,' sources said.
The merchant bankers for SAIL share sale include SBI Caps, Kotak Mahindra and Deutsche Bank. Post stake sale, the government's stake would come down to 75 per cent.There have been apprehensions that government might defer stake sale in SAIL to next fiscal owing to tepid financial results and bleak performance of the steel sector.
However, sources said the sale is unlikely to be deferred as the government is trying hard to achieve the disinvestment target to restrict fiscal deficit at 5.3 per cent of GDP this financial year.The Cabinet Committee on Economic Affairs had in July last year approved 10.82 per cent disinvestment in SAIL out of government's 85.82 per cent stake, through the Offer of Sale (OFS) route.
However, it could not be taken forward amidst the subdued market conditions. The government has kept the issue on hold anticipating buoyancy in the market to return. SAIL shares have not been part of the market rally during 2012. The stock which touched a 52-week high of Rs 115.90 on 17 February 2012, fell to its 52-week low of Rs 75.80 on 5 September 2012.
GUJARAT NRE COKING COAL BOARD OPPOSES JSPL’S TAKEOVER BID
The board of Gujarat NRE Coking Coal has advised company shareholders to reject Jindal Steel and Power’s all-cash AUD 221.61 million (Rs 1,200 crore) takeover bid, saying the offer does not adequately reflect future prospects.
‘Your Directors unanimously recommend that you reject the Jindal offer,’ Gujarat NRE Coking Coal Executive Chairman Arun Kumar Jagatramka said in a statement.
Jindal Steel and Power (JSPL), which holds 19.48 per cent stake in Gujarat NRE Coking Coal, made the offer on 31 January. Gujarat NRE Coking Coal is Australian subsidiary of Kolkata-based Gujarat NRE Coke. JSPL also has a coking coal supply agreement with Gujarat NRE Coking Coal.
Gujarat NRE Coking Coal has two producing coking coal mines in Australia, which are estimated to have reserves of 125 million tonnes (MT) and resources of 651 MT. The offer, launched on 15 February through Australian Securities Exchange (ASX), has valued Gujarat NRE Coking Coal’s shares at Australian dollars (AUD) 0.20 apiece.
The offer remains open till 15 March.‘The Offer undervalues your Gujarat (NRE Coking Coal’s) shares and does not adequately reflect company’s future prospects. The Directors and major shareholders who control approximately 64.1 per cent of the company shares outstanding intend to reject the offer,’ the company said.
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