The Centre is planning to further reduce its stake in the world’s largest coal miner, Coal India Ltd. (CIL) by 10 percent and hopes to raise funds in the range of Rs.23,000 crore-Rs.24,000 crore by means of stock market auction.
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In a notification issued on Wednesday inviting applications from bankers to manage the mega-offer for sale, the department of disinvestment (DoD) said the government would disinvest 10% stake (about 63.16 crore shares) out of its shareholding of 78.65% in CIL. The stake sale is part of government’s three-year disinvestment plan, and it was already in discussion during the last financial year.
Last week, government lifted about usd260 huge number of due to the trade regarding a seven % gain in Power Finance Corp Ltd, later after the sale collected entreaties for 2 times the volume of possesses at your disposal. Shares of CIL closed at Rs 371.45, down 5.53 per cent over previous close on the BSE.
It had then garnered Rs 22,557 crore to the exchequer.
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Coal India’s market capitalisation has inched up 4 percent in one year to 2.34 lakh crore rupees. The government has set a target of Rs 69,500 crore to be garnered through PSU stake sale this fiscal. Coal India will report its results for the quarter ended June 30 later today. Total income from operations (net) in the recently concluded quarter grew to Rs 19,518.08 crore, a growth of 6.6 per cent over Rs 18,305.61 crore a year ago. In terms of production, CIL generated 121.35 million tonnes in April-June quarter compared to 108.32mt in the year-ago period.
