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Government sells 3.18 per cent in Coal India, to get Rs 5,300 crore

PTI | Updated on: 01 Nov 2018, 07:51:53 PM
Government sells 3.18 per cent in Coal India, to get Rs 5,300 crore (Photo- Twitter/CoalIndia)

New Delhi:

The government on Thursday sold 3.18 per cent stake in Coal India, in the first big ticket disinvestment of current fiscal, which will fetch Rs 5,300 crore to the exchequer.

Retail investors lapped up 6.19 crore shares or 1.56 times the shares reserved for them. As much as 3.96 crore shares were reserved for retail investors, who can individually bid for shares worth up to Rs 2 lakh.

Institutional buyers had on Wednesday bid for 15.84 crore shares or 1.06 times the equity earmarked for them.

Taking together the bids from institutional and retail investors in the two day offer for sale (OFS), the government has sold 3.18 per cent stake in Coal India which will fetch about Rs 5,300 crore to the exchequer.

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The government had planned to sell over 18.62 crore shares or 3 per cent in Coal India Ltd (CIL) at a floor price of Rs 266 apiece.

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

The government has exercised green shoe option to the extent of 0.18 per cent in case of Coal India, an official said.

Shares of Coal India closed at Rs 261.10, down 1.90 per cent over previous close.

The government held 78.32 per cent stake in Coal India at the end of September.

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The government 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 would help the government move forward towards the Rs 80,000 crore disinvestment target in current fiscal.

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.

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First Published : 01 Nov 2018, 07:51:39 PM