SAIL FPO deferred due to market volatility: Govt
"The transaction for the first tranche, which was tentatively scheduled to open for public subscription in June 2011, has been deferred due to volatility in the share market, coupled with low market price of SAIL scrip," Minister of State for Finance S S Palanimanickam said in a written reply to the Rajya Sabha.
The Minister added that the timeline for opening the issue would be decided in due course based on improvement in market conditions.
The government had approved disinvestment of 10 percent paid up equity capital in SAIL in April last year, along with the issue of fresh equity of 10 percent of paid up equity capital by the company, in two discrete tranches of 5 percent disinvestment and 5 percent issue of fresh equity each.
Government holds 85.82 percent stake in the steel maker. This would come down to 76.97 percent after the first tranche and further to 68.93 percent after the second tranche.
"Retail individual investors and eligible employees under the employees' reservation portion would be entitled to five percent price concession," Palanimanickam said.
More from India
More from World
More from Sports
More from Entertaiment
- Cortana for Android available for public beta in US
- Xiaomi Redmi 2 Vs Redmi 2 Prime: Specification comparisons
- Alleged land encroachment in Greater Noida: HC asks DM to decide representation in 3 months
- Watch: Review of Mahindra TUV300
- 7th Pay Commission recommends 23.55% hike in salary for central govt employees; minimum salary set at Rs 18,000 per month