Government has approved strategic divestment of three loss making subsidiaries of SAIL, namely- Salem Steel Plant, Visveswaraya Iron & Steel and Alloy Steel Plant. The process of divestment will be carried out with the help of a transaction advisor, asset valuer & a legal advisor, and the process of appointment is underway- an official statement informed.
Inspite of an investment of around Rs 400 crore, the Visveswaraya plant is making losses for the past 10 years. Similarly the Salem Plant is also making losses from last 5 years inspite of an investment of Rs 2200 crore, as is Alloy Steel plant also following suit.
The government had earlier informed it would not go in for distress sale of the three SAIL subsidiaries, and rather look for a Management that will turn around the units. Steel Authority of India Ltd is currently trading at Rs 62.2, up by Rs 0.8 or 1.3% from its previous closing of Rs 61.4 on the BSE.
The scrip opened at Rs 62.1 and has touched a high and low of Rs 62.5 and Rs 61.85 respectively. So far 1448813(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs 25361.43 crore.
The BSE group 'A' stock of face value Rs 10 has touched a 52 week high of Rs 68.15 on 08-Feb-2017 and a 52 week low of Rs 38.45 on 24-May-2016. Last one week high and low of the scrip stood at Rs 63.5 and Rs 60.1 respectively. The promoters holding in the company stood at 75 % while Institutions and Non-Institutions held 20.77 % and 4.23 % respectively. The stock is currently trading above its 50 DMA.