SAIL falls on OFS

SAIL is currently the top loser on the BSE, opening 8.5% lower at Rs.68.40 and going down further to an intraday low at Rs.67.60, not too far from its 10% LC of the day at Rs.67.25.

The stock has tanked after the Govt announced its decision to sell up to 10% stake in the PSU. It will divest 5% equity with a 5$ greenshoe option.

This Offer for Sale (OFS) has opened today for non-retail investors and will open tomorrow nor retail investors and the floor price has been set at Rs.64/share.

The total OFS size is at 20.65 crore equity shares of the face value of Rs 10 each (Base Offer Size), with an option to additionally sell up to 20.65 crore equity shares of the firm (over-subscription option).

The total OFS size stands at 41.30 crore shares, which is calculated at Rs 2,664 crore.

Our Editor Mr.SP Tulsian’s advice is that the stock price can rise to Rs.85 post the OFS in he next 30-45 days thereafter. His recommendation is to use this fall as a buying opportunity.