Coal India stake sale begins, stock tanks nearly 4% in early trade

New Delhi: The government’s 10 per cent stake sale in bluechip Coal India, to raise an estimated Rs 22,600 crore, began on Friday morning. The total issue of 31.58 crore shares got bids for over 45.02 lakh shares by 1005 hours, as per the NSE data. The retail category of 12.63 crore shares got bids for over 7.20 lakh shares (0.57 per cent). The general category of over 50.53 crore shares were subscribed nearly 0.75 per cent. On the BSE, the company’s scrip hit a low of Rs 360.50, down 3.90 per cent over its previous close, soon after the start of market hours today. [caption id=“attachment_2071667” align=“alignleft” width=“380”]  Reuters [/caption]It continued to trade in the range of Rs 360.50-364 in early trade which was higher than the floor price. The floor, or the minimum offer, price for CIL’s share sale has been set at Rs 358 apiece, which is 4.57 per cent less than yesterday’s closing price. The government is selling 31.58 crore shares, or five per cent stake, through a public offer, with an option to sell another 5 per cent. On the BSE, the company’s scrip hit a low of Rs 360.50, down 3.90 per cent over its previous close, soon after the start of market hours today. It continued to trade in the range of Rs 360.50-364 in early trade, which was higher than the floor price. At the floor price, the total 10 per cent stake can fetch the government Rs 22,600 crore, although retail investors would get a five per cent price discount and 20 per cent shares worth over Rs 4,000 crore would be reserved for them. This would exceed the existing record amount of over Rs 15,000 crore raised through a public offer, which was also by CIL when it had entered the market with its IPO in 2010. CIL shares were sold at a price of Rs 245 in the IPO, which was oversubscribed more than 15 times. Tomorrow’s share sale would also help the government in its disinvestment target of Rs 43,425 crore for the current fiscal. Coal India would be the second PSU to hit the markets under the government’s disinvestment programme in the current fiscal, the first being SAIL in which shares worth about Rs 1,700 crore were sold. CIL alone can help the government meet more than half of its entire disinvestment target. PTI