Coal India stake sale 2.0 to net Rs 23400 cr

“The government of India intends to disinvest 10 percent paid-up equity capital (63,16,36,440 shares each of face value Re.10) of CIL out of its shareholding of 78.65 percent through offer for sale of shares (OFS) by promoters through stock exchanges method as per the Securities and Exchange Board of India rules and regulations”, a notice from the department of disinvestment said. The department of disinvestment (DoD), the Ministry of Finance, is in the process of appointing merchant bankers for managing the stake sale.

Government is considering selling 5-10 per cent stake in Coal India on Thursday, Bureaucracy Today has learnt.

CIL is the fourth-largest listed company in terms of market capitalisation, which was R2.35 lakh crore as on August 12. Shares of CIL closed at Rs 371.45, down 5.53 per cent over previous close on the BSE.

The government had last sold 10 % stake in the blue chip major in January, 2015. If the sale goes through, it would be the second stake sale in the monolithic coal miner in as many fiscal years. For 2015-16, the Centre has targeted raising Rs 69,500 crore from stake sales in PSUs.

On a standalone basis, however, the company’s net revenue performance sank by 43.89 percent as net revenue fell to Rs.37.74 crore in April-June period compared to the earning of Rs.67.25 crore in the same period last fiscal.

The company’s consolidated total income increased by 6.62 percent at Rs.19,518.08 crore in the April-June period compared to its earning of Rs.18,305.61 crore in the similar months of 2014.