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BW Businessworld

Govt Unlikely To Sell Stake In SAIL: Analysts

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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 19 July to discuss a potential sale of part of the government's 85.8 per cent stake in the country's largest domestic steel maker.

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 300 billion rupees 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 135.25 rupees hit on July 26, 2011.

Shares in SAIL was trading flat at 93.20 rupees, after earlier gaining as much as 1.2 per cent.