The government will Wednesday sell 3 per cent stake in Coal India for Rs 266 a share through OFS route, which may fetch the exchequer Rs 5,000 crore, according to sources.
The government will offer an additional 6 per cent stake in case of over-subscription, sources said.
The two-day offer for sale (OFS) will open tomorrow for institutional bidders. Retail investors, who can bid for the OFS on Thursday, will get an additional 5 per cent discount.
If the entire 9 per cent stake in Coal India Ltd (CIL) could be sold off, then it could fetch the government about Rs 15,000 crore.
The floor price of Rs 266 a share is at a discount of nearly 4 per cent or Rs 11 a share over the closing price of CIL scrip on the NSE.
The government had last sold 10 per cent stake in CIL through an OFS in January 2015. It had then mopped up about Rs 23,000 crore.
The government currently holds 78.32 per cent stake in Coal India.
Shares of Coal India closed at Rs 277 apiece, down 3.62 per cent on the NSE.
Disclaimer: No Business Standard Journalist was involved in creation of this content
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app