INSUBCONTINENT EXCLUSIVE:
New Delhi: The government's 3 per cent stake sale in Coal India got over-subscribed Thursday, which will fetch at least Rs 5,000 crore to
the exchequer.
Bidding opened for retail buyers on Thursday-- which was the second day of the two-day OFS-- during which small investors put
in bids for over 4.23 crore shares or 1.07 times the shares reserved for them, as per data available with NSE.
As much as 3.96 crore shares
were reserved for retail investors
Bidding will continue till 3:30 pm.
Institutional investors had Wednesday put in Rs 4,300 crore worth bids and over-subscribed the shares
Of the 14.89 crore share on offer, institutional investors put in bids for 15.84 crore shares or 1.06 times the shares reserved for
them.
The government is selling over 18.62 crore shares or 3 per cent in Coal India Ltd (CIL) at a floor price of Rs 266 apiece
This will fetch the government Rs 5,000 crore.
On top of the 3 per cent stake sale, the government also has an option to retain an
over-subscription of another 6 per cent stake in the CIL OFS.
If the additional 6 per cent stake or 37.24 crore shares are put on the block,
then the government could further get about Rs 10,000 crore
Taken together, the 9 per cent stake sale in CIL could fetch about Rs 15,000 crore to the government.
The data on how much Green Shoe option
(additional bids) in CIL OFS will be exercised by the government will be available later in the day.
Shares of Coal India were trading at Rs
263.30, down 1.07 per cent over previous close on the BSE.
Coal India (CIL) offer for sale (OFS) is the first big ticket disinvestment of
the current fiscal.
The government currently holds 78.32 per cent stake in Coal India.
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
It had then mopped up about Rs 23,000 crore.
