Steel Authority of India Limited : India to Sell 5.82% Stake in Steel Authority Friday
03/20/2013| 08:44am US/Eastern
By Anant Vijay Kala and Mukesh Jagota
NEW DELHI--India's government plans to sell a 5.82% stake in Steel Authority of India Ltd. (500113.BY) Friday through a public offering, the state-run company said Wednesday.
At the stock's closing price of 65.05 rupees Wednesday on the Bombay Stock Exchange, the government could raise 15.64 billion ($287.7 million) through the sale.
The offer price will be announced after market close Thursday.
The government currently owns 85.82% of Steel Authority, the country's largest steel producer by capacity.
The federal cabinet had earlier allowed the government to sell 10.82% of in the company.
India had targeted raising 300 billion rupees by selling its stakes in state-run companies in the current fiscal year ending this month. Last month the government cut the target to 240 billion rupees. It has so far raised about 225 billion rupees.
The Steel Authority stake sale is likely to be the last for the current fiscal year.
The government has been under pressure to sell stakes to increase its revenue as a slowing economy has hurt tax collections.
However, slowing demand has forced it to go slow on stake sales. Easing fiscal concerns on the back of a sharp cut in government spending since September have also given it room to wait for more favorable market conditions.
Write to Anant Vijay Kala at email@example.com and Mukesh Jagota at firstname.lastname@example.org