CIL seeks approval for compensatory shares out of divestment
Press Trust Of India / Kolkata Sep 07, 2009, 00:01 IST
Coal India Ltd has sought government approval to keep stock options for employees and compensatory shares to land losers out of the 10 per cent divestment proposal of government shares in the PSU mining major.
"We have finalised and sent our proposal to the Union government for approval. We do not want to include compensatory shares for land losers and employees stock options in the 10 per cent proposed divestment by the government," CIL chairman Partha S Bhattacharyya said.
He, however, did not categorically mention the quantum of shares or percentage of total share capital that would be kept for the purpose. Sources said CIL had proposed additional five per cent shares to be offered as stock options and compensatory shares for land losers to CIL. Two per cent would be offered to its 4.25 lakh employees and the balance three per cent to a trust to allot shares to land losers with a certain formula.
Land losers would also have an option for combination of compensatory shares and cash for land losers or they may go for an all-cash compensation, Bhattacharyya said.
Content Guide
