State minister at India's Ministry of Steel, Shri A. Sai Prathap, has said that the Indian government has decided to disinvest 10 percent of its shareholding in state-owned steelmaker Steel Authority of India Ltd. (SAIL) - while SAIL will raise fresh equity in the same proportion - in two discrete tranches to be issued at appropriate times in consideration of Securities and Exchange Board of India (SEBI) guidelines and prevailing market conditions.
In a written reply on July 30 in the Indian parliament, Mr. Prathap said that the actual amount that would be raised through disinvestment as well as from further public offer would depend upon a number of factors including, inter alia, the prevailing market conditions, share price and investors' interest.
Meanwhile, according to the minister's statement, SAIL has said that some of the unions at the steelmaker have resorted to distribution of pamphlets and have also staged demonstrations protesting against the decision regarding disinvestment in SAIL.
Mr. Prathap went on to say that the disinvestment of the government of India's shareholding in SAIL is in line with the government's policy to develop larger people's ownership of central public sector enterprises with the government retaining majority shareholding and control.