 "5 merchant bankers to assist in CIL stake sale")
The finance ministry's disinvestment department has shortlisted five merchant bankers to assist it in the roadshow and the sale of a 10 per cent stake in Coal India (CIL).
JM Financial, SBI Capital, ICICI Securities, Axis Capital and Kotak Mahindra Capital have been selected for managing the stake sale, senior officials said. They added that this would be the first big public sector undertaking (PSU) disinvestment to be managed by only Indian investment bankers.
As many as seven merchant bankers had bid for managing the disinvestment. The Cabinet had approved the sale last week. Shares of the company closed on Thursday at Rs 335.90, up 1.07 per cent on the BSE. At current market prices, the sale of 6.31 million shares - or 10 per cent stake - would bring in around Rs 21,200 crore.
The government had earlier extended deadline for the appointment of merchant bankers for the share sale in CIL after global investment banks flagged concerns over the company allegedly not meeting green commitments. CIL was listed on November 4, 2010 and its market value stands at around Rs 2 lakh crore.
The stake sale would help the government march towards the PSU stake sale target of Rs 41,000 crore in the current financial year. So far, the government has been able to raise Rs 12,600 crore through stake sale in four PSUs.
Of the overall disinvestment target of Rs 69,500 crore, Finance Minister Arun Jaitley had budgeted to raise Rs 41,000 crore through minority stake sale in PSUs and another Rs 28,500 crore via strategic stake sale.
JM Financial, SBI Capital, ICICI Securities, Axis Capital and Kotak Mahindra Capital have been selected for managing the stake sale, senior officials said. They added that this would be the first big public sector undertaking (PSU) disinvestment to be managed by only Indian investment bankers.
As many as seven merchant bankers had bid for managing the disinvestment. The Cabinet had approved the sale last week. Shares of the company closed on Thursday at Rs 335.90, up 1.07 per cent on the BSE. At current market prices, the sale of 6.31 million shares - or 10 per cent stake - would bring in around Rs 21,200 crore.
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The government had last sold 10 per cent in the blue-chip on January 31, at the floor price of Rs 358 apiece and garnered Rs 22,557 crore, the largest ever stake sale so far. It currently holds 79.65 per cent in the entity.
The government had earlier extended deadline for the appointment of merchant bankers for the share sale in CIL after global investment banks flagged concerns over the company allegedly not meeting green commitments. CIL was listed on November 4, 2010 and its market value stands at around Rs 2 lakh crore.
The stake sale would help the government march towards the PSU stake sale target of Rs 41,000 crore in the current financial year. So far, the government has been able to raise Rs 12,600 crore through stake sale in four PSUs.
Of the overall disinvestment target of Rs 69,500 crore, Finance Minister Arun Jaitley had budgeted to raise Rs 41,000 crore through minority stake sale in PSUs and another Rs 28,500 crore via strategic stake sale.