SAIL hits one-year low ahead of government auction sale

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SAIL hits one-year low ahead of government auction sale
Shares in Steel Authority of India (SAIL) plunged to a one-year low ahead of the government's stake sale in the company.

SAIL shares were last trading at Rs 63.90, after hitting a 52-week low of Rs 63.75 on the National Stock Exchange.

On Wednesday, a group ministers had approved the sale of a 10.82 percent stake in Steel Authority. The price of the offer is likely to be decided today and would be lower then the market price.
The SAIL offering comes close on the back of sale in other companies like Mineral and Metal Trading Corporation, National Mineral Development Corporation and Rashtriya Chemicals and Fertilizers.

The government has been selling its stake in companies it owns largely to curb the fiscal deficit target, which is likely to be around 5.2-5.3 per cent of GDP for the current year.

Next fiscal is also likely to see a host of offerings from the government, as subsidies are weighing on the government's finances.

SAIL is among the five Maharatnas of the country's Central Public Sector Enterprises. Steel Authority has five integrated steel plants, three special plants, and one subsidiary in different parts of the country.

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