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Roadshow for Coal India stake sale likely from tomorrow

It is a non-deal roadshow that begins amid threat of workers strike against divestment move

Press Trust of India  |  New Delhi 

The Department of Disinvestment is likely to embark on eight-day roadshow in London and some cities in the US from tomorrow to woo foreign investors for further 5 per cent stake sale in Coal India Ltd.

"The eight-day roadshow in places like London and some of the cities of the US, to attract foreign investors in CIL will begin from Monday," said an official.

However, he added: "This is a non-deal roadshow. The entire purpose of this roadshow is to tell the investors about CIL as a company and the kind of reserves it has."

The roadshow begins amid threats by the workers of the state-owned firm to go on strike in December against the government move to divest its stake further.

CIL workers' union had in September decided to defer its proposed three-day strike to December 17. Earlier, it was planned from September 23.

The government, which currently holds 90 per cent stake in the company, had earlier pared a plan to sell 10 per cent stake in CIL to placate employee unions. The proposal now is to divest 5 per cent stake through offer for sale (OFS) route.

CIL was listed on bourses in 2010 after the government raised Rs 15,199 crore by selling 10 per cent stake in the country's biggest initial public offering.

The company has a cash balance of about about Rs 62,000 crore. The government plans to garner Rs 40,000 crore this fiscal by way of disinvestment, of which CIL's stake sale would be the largest.

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First Published: Sun, October 20 2013. 11:20 IST