Coal India drops as Govt to dilute stake through OFS

Coal India lost 3.39% to Rs 266.55 at 10:14 IST on BSE after the government said it will sell stake in Coal India through an offer for sale.

The announcement was made after market hours yesterday, 30 October 2018.

Meanwhile, the S&P BSE Sensex was down 179.47 points, or 0.53% to 33,711.66

On the BSE, 2.55 lakh shares were traded in the counter so far, compared with average daily volumes of 2.74 lakh shares in the past two weeks. The stock had hit a high of Rs 266.90 and a low of Rs 263.80 so far during the day. The stock had hit a 52-week high of Rs 316.55 on 27 February 2018. The stock had hit a record low of Rs 256 on 28 June 2018.

The President of India, acting through and represented by the Ministry of Coal, Government of India announced an offer for sale )OFS) up to 18.62 crore (3%) equity shares of Coal India on 31 October 2018 (for non-Retail Investors only) and on 1 November 2018 (for Retail Investors and non-Retail Investors who choose to carry forward their unallotted bids) with an option to additionally sell 37.24 crore (6%) equity shares of the company.

The shares will be sold through a separate, designated window of the BSE and the National Stock Exchange of India, collectively representing 9% of the total paid up equity share capital of the company on 30 October 2018. The floor price for the OFS shall be Rs 266 per share.

Coal India's consolidated net profit surged 61.07% to Rs 3786.44 crore on 25.05% rise in total income to Rs 25470.86 crore in Q1 June 2018 over Q1 June 2017.

Coal India is an organized state owned coal mining corporate and is the single largest coal producer in the world.

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