 "Govt's 3% share sale in Coal India over-subscribed; to fetch Rs 50 bn")
The government's 3 per cent stake sale in Coal India got over-subscribed Thursday, which will fetch at least Rs 50 billion to the exchequer.
Bidding opened for retail buyers on Thursday-- which was the second day of the two-day OFS-- during which small investors put in bids for over 42.30 million shares or 1.07 times the shares reserved for them, as per data available with NSE.
As much as 39.6 million shares were reserved for retail investors. Bidding will continue till 3:30 pm.
Institutional investors had Wednesday put in Rs 43 billion worth bids and over-subscribed the shares reserved for them. Of the 148.9 million shares on offer, institutional investors put in bids for 158.4 million shares or 1.06 times the shares reserved for them.
The government is selling over 186.2 million shares or 3 per cent in Coal India Ltd (CIL) at a floor price of Rs 266 apiece. This will fetch the government Rs 50 billion.
On top of the 3 per cent stake sale, the government also has an option to retain an over-subscription of another 6 per cent stake in the CIL OFS.
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If the additional 6 per cent stake or 372.4 million shares are put on the block, then the government could further get about Rs 100 billion. Taken together, the 9 per cent stake sale in CIL could fetch about Rs 150 billion to the government.
The data on how much Green Shoe option (additional bids) in CIL OFS will be exercised by the government will be available later in the day.
Shares of Coal India were trading at Rs 263.30, down 1.07 per cent over previous close on the BSE.
Coal India (CIL) offer for sale (OFS) is the first big-ticket disinvestment of the current fiscal.
The government currently holds 78.32 per cent stake in Coal India.
The government has already raised over Rs 100.28 billion through PSU stake sale, including by way of follow on offer of Bharat-22 ETF, and initial public offering of four PSUs -- RITES, IRCON, Mishra Dhatu Nigam Ltd (MIDHANI) and Garden Reach Shipbuilders.
The stake sale in Coal India would help the government move forward towards the Rs 800 billion disinvestment target in current fiscal.
The government had last sold 10 per cent stake in CIL through an OFS in January 2015. It had then mopped up about Rs 230 billion.