Business Standard

Trade unions oppose govt stake sale in Coal India beyond 75%


Press Trust of India Kolkata
The trade unions have opposed the stake sale by the Centre in Coal India to any extent beyond the regulatory requirement of 25 per cent of floating stock for listing.
The government will sell up to 3 per cent stake (18.62 crore shares) in Coal India on October 31 and November 1 via Offer for Sale (OFS) route at a floor price of Rs 266 per share.
But, in case of oversubscription, an option of selling additional 37.24 crore (nearly six per cent stake) is there. This may pull down the government's holding in Coal India below 75 per cent.
"We oppose divestment in principle. But, it must be up to 25 per cent which is the requirmeent of SEBI for listing. Anything beyond this is not accepted and we condemn this act," INTUC-backed Coal sector union leader SQ Zama said.
The government holds 78.32 per cent stake in Coal India. LIC is the biggest public shareholder with 8.97 per cent stake in the state mining major.
CITY-backed All India Coal workers Federation secretary D D Ramanandan said it condemns the act and all the trade unions will discuss the matter.
"We have already called an all India strike in January but we will discuss such actions and decide the next course of action," he said.

Disclaimer: No Business Standard Journalist was involved in creation of this content

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Oct 30 2018 | 9:15 PM IST

Explore News