Coal India Slides 4 per cent Ahead of Govt Stake Sale

Business

oi-Sunil

By Sunil Fernandes

Published: Thursday, January 29, 2015, 11:46 [IST]

Shares in Coal India slumped 4 per cent ahead of the government's stake sale in the company. The stock was last trading at Rs 368, a drop of 4 per cent.

The government will sell up to 10 per cent stake in Coal India Ltd through offer for sale on Friday and is expected to mop up around Rs 24,000 crore at current market price.

"The (CIL share) sale shall...commence on January 30 and shall close on the same date at 3.30 pm," Coal India said in a stock exchange filing. The offer will have 20 per cent reservation for retail investors.

The floor price for the stake sale would be announced today after the close of market hours. Coal India would be second company to hit the markets under the government's disinvestment programme. In December, government sold 5 per cent stake in SAIL to garner over Rs 1,700 crore.

For the current fiscal, the government has budgeted to raise Rs 43,425 crore through disinvestment in PSUs.

With inputs from PTI