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The government has announced to divest up to 9 per cent stake in Coal India, which is expected to accumulate around Rs. 14,000 crores at the floor price through a two-day offer for sale (OFS) which has begun today, i.e. 32/10/2018.
The offer includes 186.2 million shares, which is equal to 3 per cent of the company’s equity owned by the state, at a floor price of Rs 266 a share. The offering price at 3.6% discount as compared to Tuesday’s closing price.
According to Coal India BSE filings, the government will offer an additional 372.4 million shares, which consist of around 6 per cent state-owned stake, in case of over-subscription.
The offer for sale will open for institutional bidders from today (31/10/2018) whereas the retail investors are welcomed to bid for 20 per cent of the shares that have been reserved for them on a 5 per cent discount from Thursday (1/11/2018).
Coal India employees, can also bid in the 5 per cent stake that has been set aside, for a discount of 5 per cent on the final offer price. The government has already sold about 10 per cent stake in Coal India through an offer for sale in January 2015 and had collected up about Rs 23,000 crores.
The Centre which currently holds a 78.32 per cent stake in Coal India is working towards selling more shares in order to comply with the mandatory 25 per cent public holding requirement.
