SAIL

By a Staff Reporter:

SAIL up on buzz co on govt's initial list for divestment

Shares of Steel Authority of India rose nearly 4% today following reports that the company is likely to be on the government's initial list of firms for privatisation. The government held 65% stake in the company as of Jun 30.

Steel Authority of India is a leading public sector steel manufacturing company and has five integrated steel plants, three special steel plants, and a ferro alloy plant.

The government was looking to divest stake in at least some of these plants by the end of March 2021. This, however, has been delayed.

The privatisation is likely to garner new investment for the company and help in more efficient management.

At the company's annual general meeting on Tuesday, the chairman said the company plans to enhance its crude steel production capacity to 50 mln tn in a phased manner. In 2020-21 (Apr-Mar), the company produced 15.2 mln tn of crude steel. This is also likely to have aided gains in the stock.

Source : Eureka