Govt to sell 3% stake in Coal India via OFS at floor price of Rs 225; retail investors can participate.

Government to Sell 3% Stake in Coal India Limited via OFS

The Indian government is planning to sell a 3% stake in Coal India Limited through an offer-for-sale (OFS) that will be made available to non-retail investors on June 1. Retail investors will be able to place bids on June 2. The government is hopeful of raising around INR 4,000 crore ($550 million) through this OFS. SBI Capital Markets has been appointed as the broker for this deal.

Details of the OFS

– The floor price for the OFS has been set at INR 225 per share, which is approximately 7% lower than the current market price.
– The stake being sold includes a green shoe option of 1.5%.
– The government is planning to sell its stake through the BSE and NSE stock exchanges.

Previous Reports on Government’s Stake Sale Plans

In November 2022, Bloomberg had reported that the Indian government was considering selling a 5-10% stake in Coal India Limited, Hindustan Zinc, and Rashtriya Chemicals and Fertilizers to boost revenue and take advantage of the stock market’s bull run.

Coal India Limited’s IPO

Coal India Limited is India’s largest coal mining company and had gone public in 2010 by selling a 10% stake at INR 245 per share, raising INR 15,200 crore ($2.1 billion). The company’s IPO had seen heavy demand from investors, and its shares had surged after listing.

Impact of Stake Sale on Coal India Limited

The stake sale is likely to result in a reduction in the Indian government’s shareholding in Coal India Limited from 66.1% to 63.1%. The sale is expected to increase the company’s public float, which could lead to higher liquidity and better price discovery for its shares. The stake sale could also help the government raise funds to bridge its fiscal deficit, which has widened due to the economic impact of the COVID-19 pandemic.

Follow DelhiBreakings on Google News

Superfast News Coverage by DelhiBreakings.com team.

For Superfast national news and Delhi Breaking Stories visit us daily at https://delhibreakings.com

BSNL Launched Very Affordable Keep SIM Active 130 Days Plan With Data and Unlimited Facility.

If you want full guarantee of safety then bring home this sub-compact SUV, with 5 star rating you get amazing safety features.

Bring home an electric bike stronger than Ola for just Rs 70,000, you will get a range of 175KM.

Bajaj Pulsar’s special design is entering the market next month with premium style.

Royal Enfield Scram 440 Unveiled: First Look at Design, Specs and Engine .

The amazing features of this dazzling scooter of Hero give competition to even the car, after knowing about it you will feel like buying it.

Load more posts

Something went wrong. Please refresh the page and/or try again.