Govt to sell up to 3% stake in Coal India via OFS
1 min read 31 May 2023, 11:01 PM ISTEarlier this month, the company reported a consolidated net profit of ₹5,528 crore for the fourth quarter of the last fiscal, down 18% from ₹6,715 crore logged in the corresponding quarter of FY22
PremiumNew Delhi: The Central government is planning to sell up to 3% stake in Coal India Ltd through an offer for sale (OFS).
The Union ministry of coal on Wednesday informed the exchanges that the floor price for the OFS would be ₹225 per share. At that floor price, the overall offer size adds up to over ₹4,100 crore.
On Wednesday, CIL shares closed at ₹ 241.20, lower by ₹3.15 or 1.29% from its previous close.
The OFS would be open for both retail and non-retail investors on 1 and 2 June. The exchange filing showed that the offer consist of up to 92,440,924 equity shares or 1.5% shares and in case of oversubscription, another 1.5% stake would be put on the block.
“Offer for sale in CIL opens tomorrow for non-retail investors. Retail investors can bid on Friday. Government will divest 3% equity including a Green Shoe option of 1.5%," Tuhin Kanta Pandey, secretary, Department of Investment and Public Asset Management (DIPAM), said in a tweet.
The coal ministry said in its letter to the exchanges that up to 5% shares of the total offer may be offered to employees as well.
“Such number of equity shares as would be equivalent to up to 5% of the offer size may be offered to eligible and willing employees of the company, subsequent to the completion of the offer and subject to approval from the competent authorities in accordance with applicable laws. The employees will be eligible to apply for equity shares up to 500,000," it said. The Centre currently holds 66.13% in the Maharatna company. Its market capitalization stands at ₹1.48 trillion.
Earlier this month, the company reported a consolidated net profit of ₹5,528 crore for the fourth quarter of the last fiscal, down 18% from ₹6,715 crore logged in the corresponding quarter of FY22. Its revenue from operations in the January-March quarter rose 17% to ₹38,152 crore .
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