Coal India stake sale tomorrow

Tribune News Service

New Delhi, January 28

Giving impetus to the divestment drive, the government will sell up to 10% stake in Coal India Ltd (CIL) through offer for sale on Friday and is expected to mop up around Rs 24,000 crore at current market price.

CIL said in a filing to stock exchanges that the share sale will commence on January 30. The offer will have 20% reservation for retail investors.

The floor price for the stake sale would be announced tomorrow after the close of market hours. Shares of CIL closed at Rs 384.05, up 0.27% over previous close on the BSE.

As per a circular by the stock exchanges, government will sell 5% stake or over 31.58 crore shares through an offer for sale (OFS) with an option to sell an additional 5% stake.

At the current market price, the sale of up to 10% stake or over 63.17 crore CIL shares would fetch over Rs 24,000 crore to the exchequer.

Coal India would be second company to hit the markets under the government’s disinvestment programme. In December, government sold 5% stake in SAIL to garner over Rs 1,700 crore. For the current fiscal, the government has budgeted to raise Rs 43,425 crore through disinvestment in PSUs.

Petroleum Minister Dharmendra Pradhan said today the government will sell stake in ONGC this fiscal even though falling global oil prices pose a challenge. While slumping oil prices make the prospects of stake sale in ONGC grimmer, the Government has lined up four other PSUs — Indian Oil Corporation, BHEL, Nalco, and Dredging Corporation (DCIL) for disinvestment this fiscal.