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Money Jul 19, 2012

Govt unlikely to sell stake in SAIL: analysts

The government is unlikely to sell a partial stake in Steel Authority of India, and will wait for a further recovery in the share price, according to analysts.

The cabinet is meeting on Thursday to discuss a potential sale of part of the government's 85.8 percent stake in the country's largest domestic steel maker.

Delaying stake sell. Reuters

India has previously said it plans to sell stakes in 15 state-run firms by the end of March 2013 in a bid to raise Rs 300 billion to help narrow its fiscal deficit.

"Valuations and price needs to grow before government can divest stake in the company. It's highly unlikely that government will sell stake at current prices," said an analyst at a large domestic brokerage who tracks the company.

SAIL shares are trading well below the one-year high of Rs 135.25 hit on 26 July 2011.

Shares in SAIL was trading flat at Rs 93.20, after earlier gaining as much as 1.2 percent.

Reuters


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