Sail eyes Rs 3,500 crore from stake sale

Sail eyes Rs 3,500 crore from stake sale

Sail’s board is meeting on Monday to finalise its regulatory filing and exact dates to launch the share sale, tentatively scheduled to open on June 14 and close on June 17.

"That is the time schedule as of now. But we have to discuss various options in the board and then take a final view,"  Verma told Reuters in an interview. Asked how much Sail expects to raise from the share sale, he said: Could be in the range of Rs 3,500 crore depending upon offer pricing.”

Sail will issue new shares equal to 5 per cent of its existing share capital in the follow-on public offer (FPO).

Sail is expanding its capacity to 20 million tonne a year by next March, and to 24 million tonne by March 2013, by spending more than $15 billion, and Verma said they would be meeting about 70 per cent of the capital expenditure through internal accruals and the remainder through borrowing.

The company also plans to set up a 0.5 million steel plant in a joint venture with Japan’s Kobe Steel in Durgapur in West Bengal with an expected investment of $350 million.

“We are discussing with them the final aspects of signing the JV agreement,” Verma said, adding he expected the agreement to be signed in the next one and half months time.