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SAIL to be privatised

The government is planning to sell 5% stake in Steel Authority
of India Ltd (SAIL) through an offer for sale, which could
fetch about ₹1,000 crore .

SAIL is a Maharatna company – it enjoys significant operational and financial autonomy

The Maharatnas

  1. Bharat Heavy Electricals Limited (BHEL)
  2. Coal India Limited
  3. Gas authority of India limited (GAIL)
  4. Indian Oil Corporation Limited (IOCL)
  5. National Thermal Power Corporation Limited (NTPC Limited)
  6. Oil & Natural Gas Corporation Limited (ONGC)
  7. Steel Authority of India Limited (SAIL)
  8. Bharat Petroleum Corporation Limited
  9. Hindustan Petroleum Corporation Limited
  10. Power Grid Corporation of India Limited
  • Steel Authority of India Limited (SAIL) is a public sector undertaking, owned and operated by the Government of India.
  • It is a steel making company
  • Annual turnover – Rs. 66,267 Crore (US$9.32 Billion) for fiscal year 2018-19
  • ~70 thousand employees
  • Assets = 11 billion USD

SAIL operates and owns 5 integrated steel plants at

• Bhilai,CH
• Rourkela. OD
• Durgapur,WB
• Bokaro.JH
• Burnpur(Asansol),WB
3 special steel plants Salem, Durgapur and Bhadravathi.

Who are SAIL’s customers?


Supplying its full range
of products to institutional
buyers like Defence and the
Railways, and SAIL successfully servicing the requirements of a
variety of customers. Some the following :-

  • Construction
  • Heavy engineering
  • Cycle
  • Auto segment
  • Container
  • Transportation (oil/gas/water)
  • Coated sheet manufacturers
  • Agricultural equipme

Shareholders

  • The government holds a 75 % stake in SAIL and retains voting
  • control of the company.
  • Other major shareholders are
  • Insurance companies with 10.84%,
  • Financial institutions/Banks with 3.50%
  • Individuals with 3.10%
  • Govt. last sold 5% stake in the steel CPSE in December 2014.

The sale of SAIL

The government may look to complete the transaction in the
current fiscal as it strives to achieve the Rs 65,000-crore
disinvestment target set in the revised estimates.(2019-20)

And far this fiscal year Govt. has ₹34,000 crore has been mopped up from CPSE
stake sale and the remaining ₹31,000 crore has to come in by
March-end.
Target for 2020-21 ?

What is ‘Offer for sale’?

  • An Offer for Sale is a mechanism where promoters in a listed company sell their shares directly to the public in a transparent manner.
  • Promoters dilute their stake by selling their shares.
  • OFS mechanism is used only when existing shares are put on the block and the or shareholders holding more than 10 per cent of the share capital in a company can come up with such an issue.
  • In an OFS, a minimum of 25 per cent of the shares offered, are reserved for mutual funds (MFs) and insurance companies.

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