In the country's biggest share sale ever, the government will sell up to 10 per cent stake in Coal India Ltd to raise about Rs 24,000 crore on Friday, reported PTI.
The government will sell 31.58 crore shares, or five per cent stake, in a public offer, with an option to sell another 5 per cent, Coal India said in a regulatory filing.
At today's closing price of Rs 384.05, a 10 per cent stake sale in the world's largest coal producer will raise Rs 24,257 crore.
The floor or minimum sale price for the offer will be announced tomorrow.
Government currently holds 89.65 per cent stake in Coal India, which was listed through a record initial public offering (IPO) in October 2010, raising Rs 15,199 crore.
With only Rs 1,715 crore being raised this fiscal by way of disinvestment, the government is looking at aggressively selling stakes in public sector firms to help meet its fiscal deficit target of 4.1 per cent of GDP for the year ending March 31.
The other major stake sale lined up is in Oil and Natural Gas Corp (ONGC), but the slumping oil prices have dampened the company's prospects.
The ONGC disinvestment was to give the government at least Rs 15,000 crore. To overcome the shortfall, it has lined up a host of companies including NMDC, Indian Oil Corporation (IOC), Bharat Heavy Electricals (BHEL), National Aluminium (Nalco) and Dredging Corporation (DCIL). Five per cent stake sale in PFC and REC are also on cards.
For the Coal India stake sale, the government has doubled to 20 per cent the quota reserved for retail investors, who can buy shares worth up to Rs 2 lakh in the share sale. They would also be given a 5 per cent discount to the bid price entered by them.
Coal India would be second company to hit the markets under the government's disinvestment programme.