New Delhi, April 08: Union Cabinet on Thursday approved a plan to sell shares in state-run Steel Authority of India Ltd to raise as much as Rs 160 billion, Home Minister P Chidambaram said.
The two-phased follow-on public offering will be a mix of a government stake sale and an issue of fresh equity by the company, Union Home Minister P Chidambaram told reporters after the Cabinet Committee on Economic Affairs approved the offering.
The government will sell 10 percent of its holding, while the company will issue additional shares worth 10% of the expanded equity base. The issue will bring down the government’s holding in the company to around 69% from 85.82%.
The share sale proceeds will be divided equally between the government and the company. The government will use the funds for social sector projects while the company will utilize the proceeds to part-finance its INR600 billion expansion plans.
–Agencies