Coal India: Up To 3% Stake to Be Sold, Floor Price Set at 225 Per Share
This will be the first stake sale in a public sector undertaking by the government in the current financial year.
New Delhi/Kolkata: The government will offload up to 3 per cent stake in Coal India Ltd through the offer for sale route starting on Thursday and the disinvestment will fetch at least ₹ 4,158 crore for the exchequer.
This will be the first stake sale in a public sector undertaking by the government in the current financial year.
The floor price has been fixed at ₹ 225 per share for the two-day Offer for Sale (OFS).
"Offer for sale in CIL opens tomorrow for non-retail investors. Retail investors can bid on Friday. Government will divest 3% equity including a Green Shoe option of 1.5 per cent," Department of Investment and Public Asset Management Secretary Tuhin Kanta Pandey said in a tweet on Wednesday.
In a stock exchange filing, the PSU behemoth said government will offload 9.24 crore shares amounting to a stake of 1.5 per cent in the company at a floor price of ₹ 225 a share. Besides, there will be a green shoe option for selling an equal amount of stake in case of over subscription.
At the floor price of ₹ 225, which is at a 6.7 per cent discount over the closing price of Coal India on BSE on Wednesday, the sale would fetch about ₹ 4,158 crore.
Shares of CIL closed at ₹ 241.20, down 1.29 per cent over previous close on the BSE.
Currently, the government holds 66.13 per cent stake in Coal India.
For the current fiscal, the government has set a disinvestment target of ₹ 51,000 crore.
Original News: Market News | Press Trust of India
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