Coal India declines as floor price for OFS set at a discount

Coal India fell 3.24% to Rs 363 at 9:35 IST on BSE after the government set the floor price for its offer for sale of shares at Rs 358 per share.

The floor price for offer for sale (OFS) was set at a discount of 4.57% to closing price of Rs 375.15 yesterday, 29 January 2015.

The announcement of floor price for OFS was made after market hours yesterday, 29 January 2015.

Meanwhile, the S&P BSE Sensex was up 3.84 points or 0.01% at 29,685.61.

On BSE, so far 1.44 lakh shares were traded in the counter as against average daily volume of 2.5 lakh shares in the past one quarter.

The stock hit a high of Rs 363.90 and a low of Rs 360.50 so far during the day. The stock had hit a record high of Rs 423.85 on 11 June 2014. The stock had 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 29 January 2015, falling 2.87% compared with Sensex's 8.34% rise. The scrip had also underperformed the market in past one quarter, gaining 4.81% as against Sensex's 9.53% rise.

The large-cap coal producer has equity capital of Rs 6316.36 crore. Face value per share is Rs 10.

The government after market hours on Wednesday, 28 January 2015, announced divestment of its stake in the company. The government has offered to sell 31.58 crore equity shares, or 5% equity, of face value of Rs 10 each with an option to sell an additional upto 31.58 crore equity shares, or 5% equity, of face value of Rs 10 each of Coal India, collectively aggregating to 10% of the total paid up equity share capital of Coal India through a sale on the separate window provided by the stock exchanges for this purpose. The sale commenced today, 30 January 2015 at 9:15 IST and shall close at 15:30 IST.

The government has reserved 20% of the size of the sale for retail investors. Retail investors will be offered a discount of 5% to the bid price entered by them in accordance with the Sebi OFS circulars. A minimum of 25% of the sale shares will be reserved for mutual funds and insurance companies.

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