The total issue of 20.65 crore shares got bids for 12.77 crore shares by 1400 hours, as per the NSE data. The retail category of 2.06 crore shares got bids for over 1.11 crore shares (54 per cent) while the general category of about 18.6 crore shares were subscribed nearly 63 per cent.
The floor, or the minimum offer, price for SAIL's share sale has been set at Rs 83 apiece, which is 2.75 per cent less than yesterday's closing price.
On the BSE, the company's scrip had hit a low of Rs 83.5, down 2.17 per cent over its previous close, soon after the start of market hours today and was trading at Rs 83.60, down 2.05 per cent, at 1400 hours.
It continued to trade in the range of Rs 84.70-83.50 in afternoon trade, which was higher than the floor price. At the floor price of Rs 83, a 5 per cent stake or over 20.65 crore shares in SAIL could garner around Rs 1,714 crore to the exchequer.
The government currently holds 80 per cent stake in the company. As much as 10 per cent of the offered shares have been reserved for retail investors, who can buy stocks worth up to Rs 2 lakh in the share sale.
A minimum of 25 per cent of the issue size would be reserved for mutual funds and insurance companies. Also, a 5 per cent discount on the bid price would be given to retail investors.
The Cabinet had in July 2012 approved 10.82 per cent stake sale in SAIL. Accordingly, the first tranche of disinvestment of 5.82 per cent was completed in March 2013, which fetched over Rs 1,500 crore to the exchequer.
The government has lined up a host of PSUs to pare its holdings. The disinvestment plan includes 5 per cent stake sale in ONGC, 10 per cent in Coal India and 11.36 per cent in NHPC. HSBC Securities, Deutsche Equities and JP Morgan India are among the six merchant bankers advising the SAIL stake sale.