The government is selling its stake in Coal India. The shares are being sold at a floor price of Rs 225 per share, with a green-shoe option of 1.5% if oversubscribed.
In the first government stake sale of current fiscal, institutional investors lapped up Coal India shares. And on the first day of the offer for sale, offers totaling Rs 6,500 crore flooded in.
On Thursday, the government issued an offer-for-sale (OFS) for more than 8.31 crore shares to institutional investors. However, 3.46 times as many shares, or 28.76 crore, were offered in bids. Institutional bids are worth Rs 6,500 crore at the recommended price of Rs 226.12 per share.
Non-retail investors responded enthusiastically to the Offer for Sale in CIL on Thursday. 3.46 times the base size of subscribers purchased the issue. The green shoe option will be used by the government. On Friday, June 2 retail investors can place bids, tweeted Tuhin Kanta Pandey, secretary of the Department of Investment and Public Asset Management. 66.13 percent of CIL is now owned by the government. 66.13 percent of CIL is now owned by the government.
The government would go closer to reaching the Rs 51,000-crore disinvestment objective set for the current fiscal by selling its interest in Coal India. The government is selling more than 18.48 crore shares, or 3% of the PSU coal producer, in the two-day OFS at a floor price of Rs 225 per share. In the event of oversubscription, a green-shoe option of 1.5% is included in the sale.
