InvestorQ : How has been the retail investor response to the OFS of SAIL as of end of Friday?
Niti Shenoi made post

How has been the retail investor response to the OFS of SAIL as of end of Friday?

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ishika Banerjee answered.
1 month ago
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There was a 2.4 times response for the retail quota of SAIL OFS and the overall quote for SAIL was oversubscribed nearly 5 times. . That means against the issue size of Rs.1330 crore for 5% stake, the total offers were to the tune of Rs.6500 crore. This also means that the government will exercise its greenshoe option and divest 10% at Rs.2660 crore.

Individual investors bid for nearly 12.5 crore shares against 5.16 crore shares that were on offer for the retail segment. A day earlier, even the qualified institutional investor portion had garnered more than two times subscription. The OFS was priced at Rs.64 and looking at the response, the stock price rallied to Rs.70 on Friday.

Once the stake sale is completed, the stake of the government of India in Steel Authority will stand reduced from 75% to 65%. The sale of stake in SAIL was part of the larger divestment program of the government. It was front-ended after the stock price of SAIL rallied sharply following the all-round re-rating of the SAIL stock. With the SAIL divestment completed, the total annual divestment tally has crossed Rs.15,000 crore.

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