Shares of disinvestment candidate fall; NHPC down 4%

Coal India was down 2.1% at Rs 366, while ONGC down 1% at Rs 442 on BSE.

Shares of disinvestment candidates such as Oil and Natural Gas Corporation (ONGC), Coal India and NHPC are trading lower by up to 4% after the Union Cabinet on Wednesday cleared a dilution of the government's stake in these companies.

Among the individual stocks NHPC has dipped nearly 4% to Rs 21.60 on BSE, followed by Coal India (down 2.1% at Rs 366) and ONGC (down 1% at Rs 442).

The Cabinet Committee on Economic Affairs approved selling 10% of the government's stake in Coal India, 5% in ONGC and 11.38% in NHPC.

To boost retail investors' participation in its disinvestments, the government is planning to offer them discounts, besides a quota of up to 20% for small investors (those bidding for up to Rs 2 lakh), the Business Standard report suggests.