The government will sell 240.4 million shares, or a 5.82 percent stake, in state-owned Steel Authority of India Ltd (SAIL.NS) through an auction on March 22, the steel ministry said on Wednesday.

Earlier in the day, a panel of ministers had approved the sale of a 10.82 percent stake in the steelmaker.

The base price for the offer will be made public on Thursday.

The ministry did not elaborate on why the size of the sale had been scaled back. Shares in the company closed 0.4 percent lower at 65.15 rupees in Mumbai trading. So far this year, the stock has lost 28 percent of its market value.

At the current market price, the stake sale is worth about $290 million.