GET Stock QuotesNews18 APP
News18 English
Powered by cricketnext logo
»
1-min read

Govt to Sell 3% Stake in CIL at Rs 266 a Share, Eyes at Least Rs 5,000 Crore

Further, the government will have an option to retain an over-subscription of an additional 6 per cent stake in the company, which will take the total stake on offer to 9 per cent, Coal India Ltd (CIL) said in a NSE filing.

PTI

Updated:October 30, 2018, 7:40 PM IST
facebookTwittergoogleskypewhatsapp
Govt to Sell 3% Stake in CIL at Rs 266 a Share, Eyes at Least Rs 5,000 Crore
Representative Image. (Image: REUTERS)
Loading...
New Delhi: The government will on Wednesday launch an OFS programme to sell 3 per cent stake in PSU major Coal India at a floor price of Rs 266 a share, which is expected to fetch about Rs 5,000 crore to the exchequer.

Further, the government will have an option to retain an over-subscription of an additional 6 per cent stake in the company, which will take the total stake on offer to 9 per cent, Coal India Ltd (CIL) said in a NSE filing.

The two-day offer for sale (OFS) will open on Wednesday for institutional bidders. Retail investors, who can bid for the OFS on Thursday, will get an additional 5 per cent discount.

At the current market prices, sale of 3 per cent stake or 18.62 crore shares would fetch the government around Rs 5,000 crore. If the additional 6 per cent stake or 37.24 crore shares are put on the block, then the government could get a further about Rs 10,000 crore.

Taken together, the 9 per cent stake sale in CIL could fetch about Rs 15,000 crore to the government.

The floor price of Rs 266 a share is at a discount of nearly 4 per cent or Rs 11 a share over the closing price of CIL scrip on the NSE.

The government had last sold 10 per cent stake in CIL through an OFS in January 2015. It had then mopped up about Rs 23,000 crore.

The government currently holds 78.32 per cent stake in Coal India.

Shares of Coal India closed at Rs 277 apiece, down 3.62 per cent on the NSE.

Coal India would be the first PSU OFS in the current fiscal. The government has already raised over Rs 10,028 crore through PSU stake sale, including by way of follow on offer of Bharat-22 ETF, and initial public offering of 4 PSUs -- RITES, IRCON, Mishra Dhatu Nigam Ltd (MIDHANI) and Garden Reach Shipbuilders.

The stake sale in Coal India would help the government move forward towards the Rs 80,000 crore disinvestment target in current fiscal.
| Edited by: Ahona Sengupta
Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwittergoogleskypewhatsapp
Most Active
Company Price Change %Gain
Yes Bank 205.95 7.83
Jet Airways 322.50 -6.93
Reliance 1,149.65 1.97
Indiabulls Hsg 740.00 -3.42
HDFC Bank 2,016.10 0.59
Company Price Change %Gain
Grasim 849.95 2.02
Yes Bank 206.00 7.68
Jet Airways 323.10 -6.85
HDFC Life 383.00 -2.47
Kotak Mahindra 1,178.00 0.90
Top Gainers
Company Price Change %Gain
Yes Bank 205.95 7.83
ITC 284.50 2.87
Tata Motors 184.70 2.67
IndusInd Bank 1,537.10 2.40
Vedanta 211.50 2.27
Company Price Change %Gain
Yes Bank 206.00 7.68
ITC 284.00 2.81
Tata Motors 184.25 2.70
IndusInd Bank 1,539.00 2.68
Sun Pharma 531.65 2.32
Top Losers
Company Price Change %Gain
Indiabulls Hsg 740.00 -3.42
GAIL 334.70 -2.19
Bajaj Finance 2,367.00 -1.46
ONGC 154.85 -0.96
ICICI Bank 363.50 -1.10
Company Price Change %Gain
ONGC 154.75 -1.15
NTPC 153.05 -0.65
ICICI Bank 363.50 -1.06
SBI 288.30 -0.69
Axis Bank 615.25 -0.49

Live TV

Loading...
Loading...