Government Likely to Sell 3%-4% Stake in Coal India Worth Rs 10,000 Crore
The Indian government is likely to divest a 3% to 4% stake in state-run mining giant Coal India through the offer-for-sale (OFS) route, according to a CNBC-TV18 report citing sources. The proposed stake sale is estimated to be worth around Rs 10,000 crore ($1.06 billion), making it one of the government’s major divestment moves this fiscal year.
The report added that the shares are expected to be offered at a discount to the prevailing market price to attract investor participation. Following the news, Coal India shares declined as much as 2.55% during Thursday’s trading session. As of March 31, the Indian government held a 63.13% stake in the company, according to LSEG data.
An offer-for-sale mechanism allows promoters or major shareholders of listed firms to sell shares directly through stock exchanges. Neither Coal India nor India’s finance ministry immediately responded to Reuters’ requests for comment on the reported stake sale plan.
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