The government on Thursday approved a 20 per cent disinvestment in Steel Authority of India Ltd that would fetch a total of Rs 16,000 crore (Rs 160 billion).

Following the two-tranche disinvestment, the government and the company would get Rs 8,000 crore (Rs 80 billion) each, Home Minister P Chidambaram told reporters after a meeting of the Cabinet Committee on Economic Affairs.

Post disinvestment, the government's equity will fall to 69 per cent from 85.82 per cent currently.

The stake sale will take place in two tranches of 10 per cent each, Chidambaram said, adding that each time 5 per cent will be through further public offer and another 5 per cent through sale of government equity.

SAIL shares were trading at Rs 248.25, down by 2.67 per cent on the BSE.