Government to raise Rs5,000cr by divesting 3% stake in Coal India
The government will divest 3% stake in Coal India for Rs266/share through the offer for sale (OFS) route on October 31, 2018, which will fetch ~Rs5,000cr, according to media reports.
The government currently has 78.3% shareholding in Coal India.The government will offer an additional 6% stake in case of over-subscription, sources said.
The floor price of Rs266/share is at a discount of about 4% over yesterday’s closing price of the stock on the NSE.
If the entire 9% stake is sold off, it could fetch the government ~Rs15,000cr. The government has a target to raise a record Rs1,00,000cr from the sale of assets in the current fiscal year ending March 31, 2019.
The government had previously sold 10% stake in the company through OFS in January 2015. It had then fetched around Rs23,000cr.