SAIL -Offer for Sale
Today SAIL was on a 5% offer for sale to public. The floor price was set at 83. Normally on the purchase of share the share prices should rise but these days the NSE/BSE prices fall and try to adjust to the floor price. Rupees 1714 cr is the expected sale value. For retail investors they have a 5% discount and have a total limit to 160 cr. After the stake sale the Govt holding will now be 75%. ONGC and NHPC are about to follow suit. These stake sales are to meet the target of Fiscal deficit.
Steel industry is not bright now. Demand has fallen , prices have kept the growth checked. The EPS fares better than any other steel industry. Investors have mostly a hold and sell rating for SAIL now. Shorts tems gains for SAIL is not positive.
It is recommended to but this share in dips and old it for longer periods. CAPEX has been completely utilised . The output is to rise from 12.5 mtpa to 19 in the next 4 to 5 years.