SAIL kicking of PSU divestment

SAIL is not doing too well today. The stock opened weaker and remains in the red, currently amongst the top five losers on the BSE, down 3% at Rs.83.

This is the typical reaction of any PSU before the Offer for Sale (OFS) begins. The company yesterday announced that the first PSU divestment will be flagged off by SAIL’s OFS tomorrow. With the OFS price always expected to be at a discount, the market usually reacts negatively.

FY15 PSU divestment kicks off tomorrow with SAIL, which will be selling 5% stake and at the current price will raise around Rs.1700 crore. The offer will open at 9.15 am and close at 3.30pm and the floor price will be declared today.