Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
CO-PRESENTED BY
LIVE TV DownloadNews18 App
News18 English
»
2-min read

Institutional Buyers Offer Bids Worth Rs 4,300 Crore for Coal India Shares

Of the 14.89 crore share on offer, institutional investors put in bids for 15.84 crore shares or 1.06 times the shares reserved for institutional buyers, as per data available with NSE.

PTI

Updated:November 1, 2018, 8:58 AM IST
facebookTwittergoogleskypewhatsapp
Institutional Buyers Offer Bids Worth Rs 4,300 Crore for Coal India Shares
Representative Image. (Image: REUTERS)
Loading...
New Delhi: In the first big ticket disinvestment of the current fiscal Coal India share sale kicked off for a smooth sail on Wednesday as institutional investors put in bids worth Rs 4,300 crore and over-subscribed the shares reserved for them.

Of the 14.89 crore share on offer, institutional investors put in bids for 15.84 crore shares or 1.06 times the shares reserved for institutional buyers, as per data available with NSE.

Officials said the domestic mutual funds and insurance companies invested heavily in the offer for sale (OFS) on Wednesday, which was the first day of the two day share sale.

"Bids worth Rs 4,300 crore has been put by institutional buyers," officials said.

The share sale will on Thursday open for retail investors, who would be offered a 5 per cent discount. These investors can bid for shares worth up to Rs 2 lakh.

The government is selling over 18.62 crore shares or 3 per cent in Coal India Ltd (CIL) at a floor price of Rs 266 apiece. If fully subscribed, it will fetch the government Rs 5,000 crore.

"A Rs 5,000 crore successful OFS in this volatile and subdued market will help in uplifting investor sentiment in broader market," officials said.

Coal India scrip slipped to a low of Rs 263.80 apiece during intra-day trade. The scrip closed down 3.73 per cent over previous close on the BSE at Rs 265.60 -- below the floor price of the OFS.

The BSE benchmark Sensex ended 550.92 points up at 34,442.

On top of the 3 per cent stake sale, the government also has an option to retain an over-subscription of another 6 per cent stake in the CIL OFS.

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 around Rs 15,000 crore to the government.

The floor price of Rs 266 a share was at a discount of nearly 4 per cent or Rs 11 a share over Tuesday's 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.

It 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 four PSUs -- RITES, IRCON, Mishra Dhatu Nigam Ltd (MIDHANI) and Garden Reach Shipbuilders.

The stake sale in Coal India will help the government move forward towards the Rs 80,000 crore disinvestment target in current fiscal. ​
Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwittergoogleskypewhatsapp
 
 
Most Active
Company Price Change %Gain
SBI 344.70 7.97
Reliance 1,325.90 4.62
Indiabulls Hsg 814.55 12.63
ICICI Bank 407.70 4.62
HDFC 2,122.50 6.46
Company Price Change %Gain
Reliance 1,325.50 4.72
Axis Bank 782.75 4.62
Indiabulls Hsg 811.05 12.47
SBI 344.60 8.04
Yes Bank 143.60 6.73
Top Gainers
Company Price Change %Gain
Indiabulls Hsg 814.55 12.63
Adani Ports 400.10 8.99
IndusInd Bank 1,494.65 8.82
SBI 344.70 7.97
Tata Motors 190.15 7.52
Company Price Change %Gain
IndusInd Bank 1,492.60 8.64
SBI 344.60 8.04
Tata Motors 190.00 7.53
Yes Bank 143.60 6.73
Larsen 1,451.05 6.55
Top Losers
Company Price Change %Gain
Dr Reddys Labs 2,589.40 -5.67
Zee Entertain 362.50 -2.59
Bajaj Auto 3,006.30 -1.11
Tech Mahindra 779.35 -0.70
Infosys 722.40 -0.21
Company Price Change %Gain
Bajaj Auto 3,005.85 -1.18
Infosys 722.40 -0.19

Live TV

Loading...
Countdown To Elections Results
  • 01 d
  • 12 h
  • 38 m
  • 09 s
To Assembly Elections 2018 Results