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Govt expected to get Rs 4,000 cr after investors over-subscribe Coal India share sale

Govt expected to get Rs 4,000 cr after investors over-subscribe Coal India share sale

India Blooms News Service | @indiablooms | 02 Jun 2023, 08:34 pm

New Delhi: The government is expected to receive Rs 4,000 crore from Coal India’s share sale, as both retail and institutional investors showed strong demand, resulting in oversubscription, media reports said.

During the two-day offer for sale (OFS), the government divested its 18.48 crore shares, equivalent to a 3% stake in Coal India, at a floor price of Rs 225 per share.

Based on this floor price, the stake sale is estimated to generate around Rs 4,158 crore in revenue for the government.

On Thursday, institutional investors submitted bids for more than 28.76 crore shares, while retail buyers placed bids for over 2.58 crore shares of Coal India.

On Friday, institutional bidders submitted bids for 5.12 crore shares.

This resulted in a total bid value of Rs 7,623 crore at the floor price.

The offer for sale (OFS) of Coal India represents the first government stake sale of a public sector undertaking in the current fiscal year. Currently, the government holds a 66.13% stake in Coal India.

The stake sale in Coal India will contribute towards the government's target of Rs 51,000 crore in disinvestment for the current fiscal year.