CIL 10 percent stake sale oversubscribed

The government may stretch about Rs 22,600 crore bid.

jasleen

Jasleen Kaur | January 30, 2015



The 10 percent stake sale in Coal India Limited (CIL) through a one-day offer has been oversubscribed. According to the NSE website, while the retail portion (where investment is done up to Rs 2 lakh) was undersubscribed (0.42), the institutional category was oversubscribed by 1.2 times. The government may stretch about Rs 22,600 crore bid.

The CIL offer was set at the floor price of Rs 358, which was below the closing of Rs 374 at the end of the market hours on Thursday, offering a 4.5 percent discount.

For CIL stake sale, the govt had doubled to 20 percent of the quota reserved for retail investors, who can buy shares worth up to Rs 2 lakh in the share sale.

This is also the first stake sale in which the government has considerably reduced the time gap between the announcement of disinvestment and the date of offers, in order to save the beating down of share price.

The government had offered 10 percent of its stake in the state-owned CIL through an offer for sale route on Friday.

The government’s stake in CIL has been reduced by 10 percent to 79.65 percent.

Earlier this month, the trade unions in CIL had gone on a strike protesting against the stake sale, but it was later called off.

Under the disinvestment programme of the current government, CIL is the second company to hit the market. Earlier in December, the government earned over Rs 1,700 crores through 5 percent stake sale in steel giant SAIL.

Comments

 

Other News

ONGC acquires 51.11% stake in HPCL

In its bid to create an oil major to match the performance of global and domestic oil and gas players, Oil and Natural Gas Corporation Ltd (ONGC) board has approved the acquisition of entire 51.11 percent shareholding of the government in Hindustan Petroleum Corporation Ltd (HPCL) with a total acqu

Foundation of mine counters measure vessels command laid at Goa Shipyard

Goa chief minister Manohar Parrikar recently laid the foundation stone of the Rs 120 crore- MCMV (mine counters measure vessels) Command, Control & Design Office at Goa Shipyard Ltd, Vasco in Goa. The defence ministry has entrusted the GSL for series construction of sophisticated and hig

Sri Lankan defence secy reviews patrol vessel construction at GSL

A high level Sri Lankan defence delegation headed by secretary of defence, Kapila Waidyaratane PC recently visited Goa Shipyard Ltd. The delegation held discussions with GSL CMD, Rear Admiral (retired) Shekhar Mital. The defence delegation was shown the ongoing shipbuilding activities includ

Are our authorities callous when it comes to ensuring safety of people?

Are our authorities callous when it comes to ensuring safety of people?

Unto the first few

Our constitution promises equality of status and opportunity to all citizens but statistical data suggests that inequalities in wealth and income have increased since independence and are now on an uncontrolled upward spiral. Recently, Thomas Piketty and Lucas Chancel in their aptly titled s

NTPC seeks protection for Gadarwara project

NTPC has sought the help of Madhya Pradesh government for the safety of Gadarwara power project site and the workers who have stopped the work on the site since December 22. It has appealed to the local people to support the project of national importance. Half of the electricity generated

Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter