Government weighs ₹4,000 crore steel fundraise
The government is considering a ₹4,000 cr FPO in Steel Authority of India Ltd alongside an OFS. OI Charts data showed the stock down 6.9% over 20 sessions, with futures indicating short build-up and key option interest at ₹170 and ₹180.
pre-market1 source ↓machine-written, see hownot a recommendation
- SAIL close
- ₹171.00
- On the day
- -0.32%
- Futures OI, short build-up
- +7.8%
- Put-call ratio
- 1.26
- Max pain
- ₹172.50
The government is considering a follow-on public offer and an offer for sale in Steel Authority of India Ltd, with the proposed FPO expected to raise ₹4,000 cr, according to Zee Business sources. The FPO proceeds would go to the company and could support plant upgrades, capacity expansion and higher steel output, while the OFS would help the government meet its disinvestment objectives. The company has not yet announced the issue, and its size, timing, pricing and final structure remain undisclosed. 🏭
The potential fundraise matters because fresh equity could provide capital for modernising facilities without relying entirely on debt. That is relevant for the domestic steel sector, where public-sector producers are being considered as part of efforts to expand India’s production capabilities. However, an OFS would increase the available share supply and direct proceeds to the exchequer rather than the company, making the final mix important for investors. The report remains a proposal, not a completed transaction.
OI Charts data showed the stock at ₹171.00 on 12 Oct 2026, down 0.3% on the day, with volume of 27,545,534 shares. The stock had declined 3.4% over five sessions and 6.9% over 20 sessions, while its 52-week range stood at ₹124.00 to ₹209.70. Derivatives positioning pointed to a short build-up, with futures open interest up 7.8% to 202,546,500 shares and futures trading at a 0.05% discount to spot. The put-call ratio was 1.26, with the largest put open interest at ₹170 and call open interest at ₹180. 📉
The next market trigger is an official filing confirming whether the FPO and OFS will proceed, followed by disclosure of the issue size, pricing, government stake offered and intended use of proceeds. Until then, traders will be watching the ₹170 put-interest level, ₹180 call-interest level and ₹172.50 options max-pain level for positioning around the 27 Oct 2026 expiry. The proposal also needs to be assessed against the company’s recent decline and the supply impact of any equity issuance. ⚙️
Source: Zee Business, 12 Oct 2026
Not investment advice. For informational purposes only.