Govt to sell 3% stake in Coal India via offer for sale route

October 30, 2018 18:34

The government will Wednesday sell 3 per cent stake in Coal India for Rs 266 a share through offer for sale route, which may fetch the exchequer Rs 5,000 crore, according to sources.

The government will offer an additional 6 per cent stake in case of over-subscription, sources said.

The two-day offer for sale will open tomorrow for institutional bidders.

Retail investors, who can bid for the OFS on Thursday, will get an additional 5 per cent discount.

If the entire 9 per cent stake in Coal India Ltd could be sold off, then it could fetch the government about Rs 15,000 crore.

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. -- PTI

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