- The government is planning to sell 5% stake in Steel Authority of India Ltd (SAIL) through an offer for sale, which could fetch about ₹1,000 crore .
- SAIL is a Maharatna company – it enjoys significant operational and financial autonomy
- Bharat Heavy Electricals Limited (BHEL)
- Coal India Limited
- Gas authority of India limited (GAIL)
- Indian Oil Corporation Limited (IOCL)
- National Thermal Power Corporation Limited (NTPC Limited)
- Oil & Natural Gas Corporation Limited (ONGC)
- Steel Authority of India Limited (SAIL)
- Bharat Petroleum Corporation Limited
- Hindustan Petroleum Corporation Limited
- Power Grid Corporation of India Limited
- Steel Authority of India Limited (SAIL) is a public sector undertaking, owned and operated by the Government of India.
- It is a steel making company
- Annual turnover – Rs. 66,267 Crore (US$9.32 Billion) for fiscal year 2018-19
- ~70 thousand employees
- Assets = 11 billion USD
SAIL operates and owns 5 integrated steel plants at
- 3 special steel plants Salem, Durgapur and Bhadravathi.
Who are SAIL’s customers?
- Besides supplying its full range of products to institutional buyers like Defence and the Railways,
- SAIL is successfully servicing the requirements of a variety of customers in the following user segments:
- Heavy engineering
- Auto segment
- Transportation (oil/gas/water)
- Coated sheet manufacturers
- Agricultural equipment
- The government holds a 75 % stake in SAIL and retains voting control of the company.
- Other major shareholders are
- Insurance companies with 10.84%,
- Financial institutions/Banks with 3.50%
- Individuals with 3.10%
- Govt had last sold a 5% stake in the steel CPSE in December
- 2018-19 Disinvestments
- 2019-20 Disinvestments
The sale of SAIL
- The government may look to complete the transaction in the current fiscal as it strives to achieve the Rs 65,000-crore disinvestment target set in the revised estimates.(2019-20)
- So far this fiscal, ₹34,000 crore has been mopped up from CPSE stake sale and the remaining ₹31,000 crore has to come in by March-end.
- Target for 2020-21 ?
What is ‘Offer for sale’?
- An Offer for Sale is a mechanism where promoters in a listed company sell their shares directly to the public in a transparent manner.
- Promoters dilute their stake by selling their shares.
- OFS mechanism is used only when existing shares are put on the block. Only promoters or shareholders holding more than 10 per cent of the share capital in a company can come up with such an issue.
- In an OFS, a minimum of 25 per cent of the shares offered, are reserved for mutual funds (MFs) and insurance companies.