NEW DELHI: The government will launch an
offer for sale
(OFS) programme on Wednesday to sell a 3 per cent stake in
Coal India
(
CIL
) at a floor price of Rs 266 a share, which is expected to fetch about Rs 5,000 crore to the exchequer.
Further, the government will have an option to retain an over-subscription of an additional six per cent stake in the company, which will take the total stake on offer to 9 per cent, the public sector unit (
PSU
) major said in an
NSE filing.
The two-day will open on October 31 for institutional bidders. Retail investors, who can bid for the OFS on Thursday, will get an additional 5 per cent discount. At current market prices, sale of three per cent stake or 18.6 crore shares would fetch the government around Rs 5,000 crore.
If the additional 6 per cent stake or just over 37 crore shares are put on the block, then the government could get a further Rs 10,000 crore. Taken together, the 9 per cent stake sale in CIL could fetch about Rs 15,000 crore to the government.
Stay updated with the latest news on Times of India. Don't miss daily games like Crossword, Sudoku, and Mini Crossword.
Start a Conversation
Post comment