New Delhi, April 8 (Inditop.com) The Cabinet Committee on Economic Affairs (CCEA) Thursday approved a proposal of the Steel Authority of India Ltd (SAIL) to raise additional capital through sale of the government’s stake in the company and issue of fresh equity in two tranches.
“Both the tranches will include a fresh issue of 5 percent pre-issue paid up equity of the company and offer of sale of 5 percent of government equity in SAIL,” said Home Minister P. Chidambaram, briefing reporters about the CCEA’s decision.
He said that both the government and SAIL will be able to raise up to Rs.8,000 crore each through the disinvestment and issue of fresh equity, adding that the time-line for the process will depend on market conditions.
The proceeds from fresh issue of equity would help fund SAIL’s capital expenditure.
