Saturday, July 13, 2024
HomeTop Global NewsMarketsGovt to sell 3% in Coal India for over Rs 4k crore.

Govt to sell 3% in Coal India for over Rs 4k crore.

Through the offer-for-sale (OFS) process, the government will be selling a 3% stake in Coal India, with a floor price of Rs 225 per share. The difference between the floor price and Coal India’s Wednesday BSE closing price at Rs 241 is 6.7%. The OFS is scheduled to start on June 1 and end on June 2. The government would earn Rs 4,160 crore at the floor price.

One of the biggest coal miners in the world, Coal India, is currently owned by the government to a degree of little over 66%. According to BSE data, the “Maharatna” PSU had a market valuation of about Rs 1.5 lakh crore as of Wednesday’s closing.

The basic offer is for 9.2 crore shares, or 1.5% of Coal India, with an over-subscription option for an additional 9.2 crore shares, according to the company’s notification to the exchanges. Retail investors are eligible for 10% of the offer, while mutual funds and insurance firms are eligible for 25%.

Also read, Billionaire Anil Agarwal’s chip dreams stymied as India set to deny funding.

Shares of Coal India drop by 5%:

In intraday trade on Thursday, shares of Coal India (CIL) fell 5% to Rs 229.65 on the BSE as the government started selling its 3% interest through the offer for sale (OFS) process today.

The floor price for the stake sale has been fixed at Rs. 225 per share, or around a 7% discount from the stock’s Wednesday closing price of Rs. 241.2. The stock has increased 13% over the last two months as of Wednesday.

From June 1, the Centre has proposed selling up to 3% of its stake in the national miner CIL via the OFS mechanism. Through the auction procedure, the government hopes to raise about Rs 4,162 crore.

The stake sale would help the Centre reach its disinvestment goal for 2023–2024, which is set at Rs 51,000 crore. Additionally, the Centre’s proposal calls for selling up to 1.5% of CIL on June 1 and 2, with a green shoe option to sell an extra 1.5%. Currently, the Centre owns 66.13 percent of CIL.

- Advertisement -spot_img

latest articles

explore more


Please enter your comment!
Please enter your name here