CIL's 10% stake sale to fetch Rs. 18k cr next fiscal
As its disinvestment programme picks up, the government may next fiscal sell up to 10% stake in the world's largest coal producer Coal India Ltd to rake in over Rs. 18,000 crore.business Updated: Mar 17, 2013 11:23 IST
As its disinvestment programme picks up, the government may next fiscal sell up to 10% stake in the world's largest coal producer Coal India Ltd to rake in over Rs. 18,000 crore.
"The government is considering to offload up to 10% stake in Coal India through the offer for sale (OFS) route in the next financial year," a source said, adding, the plan is at the initial stage.
An e-mail sent to Coal India Ltd (CIL) spokesperson on the issue did not elicit any response.
Shares of CIL closed at Rs. 320 apiece on the BSE on Friday. At the current price, a sale of 56.84 crore shares, or 10% of government holding, could fetch over Rs. 18,000 crore to the exchequer.
The Department of Disinvestment would soon invite bids from merchant bankers and legal advisers for managing the CIL stake sale.
CIL will be the biggest disinvestment for the government in the 2013-14 fiscal. The government plans to raise Rs. 40,000 crore by way of PSU stake sale next fiscal.
The government currently holds 90% stake in CIL.
CIL got listed on the bourses in 2010 through an initial public offering, through which the government raised Rs 15,199 crore by selling 10 per cent stake.
In the current fiscal, the government plans to raise Rs. 24,000 crore by way of PSU disinvestment. It has raised over Rs. 22,000 crore through stake sale in six companies - NMDC, Hindustan Copper, Oil India, NTPC, RCF and Nalco in current fiscal so far.
The government raised Rs. 11,458 crore through disinvestment in NTPC, Rs. 3,141.51 crore from Oil India and Rs. 5,973 crore from NMDC stake sale.
Besides, Rs. 807 crore was raised through 5.58% stake sale in Hindustan Copper and Rs. 300 crore from Rashtriya Chemicals and Fertilisers. Also a 6% stake sale in Nalco helped raise over Rs. 600 crore.