Coal India fell 2.26% to Rs 352.70 at 9:21 IST on BSE on report that the government plans to sell another 5% stake in the company over the next few months, after raising about Rs 23000 crore by divesting a 10% stake last week.
Meanwhile, the BSE Sensex was down 134.58 points, or 0.46%, to 29,048.37.
On BSE, so far 16.82 lakh shares were traded in the counter, compared with an average volume of 2.69 lakh shares in the past one quarter.
The stock hit a high of Rs 354.75 and a low of Rs 350.25 so far during the day. The stock hit a record high of Rs 423.85 on 11 June 2014. The stock hit a 52-week low of Rs 240.50 on 26 February 2014.
The stock had underperformed the market over the past one month till 30 January 2015, falling 5.68% compared with 6.49% rise in the Sensex. The scrip had also underperformed the market in past one quarter, rising 0.17% as against Sensex's 6.72% rise.
The large-cap company has an equity capital of Rs 6316.36 crore. Face value per share is Rs 10.
According to the report, a portion of the next offering will be reserved for employees, who may get a special discount on the sale price over what is usually given to retail investors. The government needs to reduce its stake by another 5% to allow Coal India to meet the regulatory requirement of at least 25% public shareholding for listed companies.
The government successfully completed divestment of 10% stake in Coal India (CIL) through the stock exchanges mechanism on Friday, 30 January 2015. As against the total offer size of 63.16 crore shares of CIL, total bids received were for a quantity of 67.5 crore shares across all categories. The oversubscription to the total quantity was around 5%. The CIL disinvestment has attracted the largest ever participation by foreign institutional investors in a Government Offer for Sale (OFS), according to a statement issued by the finance ministry after trading hours on Friday, 30 January 2015.
With this divestment, the Government of India's (GoI) stake in CIL would come down to 79.65%, from 89.65%. The GoI has raised Rs 22557.63 crore from the CIL disinvestment.
Coal India's consolidated net profit fell 28.2% to Rs 2192.38 crore on 0.6% rise in total income to Rs 17704.93 crore in Q2 September 2014 over Q2 September 2013.
Coal India is an organized state owned coal mining corporate.
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