Coal India declined 0.85% to Rs 332.10 at 10:00 IST on BSE after the Cabinet Committee on Economic Affairs approved the disinvestment of 10% of government's stake in the company.
The announcement was made after market hours yesterday, 18 November 2015.
Meanwhile, the BSE Sensex was up 157.12 points, or 0.62%, to 25,639.64.
On BSE, so far 62,666 shares were traded in the counter, compared with an average volume of 3.72 lakh shares in the past one quarter.
The stock hit a high of Rs 336.35 and a low of Rs 330.25 so far during the day. The stock hit a record high of Rs 447.25 on 5 August 2015. The stock hit a 52-week low of Rs 300.75 on 29 September 2015.
The stock had outperformed the market over the past one month till 18 November 2015, falling 1.03% compared with 6.36% fall in the Sensex. The scrip had also outperformed the market in past one quarter, falling 7.99% as against Sensex's 8.44% decline.
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The large-cap company has an equity capital of Rs 6316.36 crore. Face value per share is Rs 10.
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi, yesterday, 18 November 2015, has approved the disinvestment of 10% paid up equity capital of Coal India (CIL). This implies divesting of 63.16 crore shares out of the Government of India (GoI) shareholding of 78.65% (after adjusting 1% equity to be offered for sale to the employees of CIL as per CCEA decision in September 2014, which is under process of implementation) through public offering in the domestic market.
After the disinvestment of 10% equity, the GoI's shareholding in CIL would come down to 68.65% (with slight variation based on outcome of sale of one percent equity shares to employees of CIL). The disinvestment transaction will be an offer for sale (OFS) of shares by the promoters that is GoI, through the stock exchange mechanism method.
It may be recalled that the government had sold a 10% stake in Coal India in January this year.
Coal India's consolidated net profit rose 16% to Rs 2543.80 crore on 8.2% rise in net sales to Rs 16957.59 crore in Q2 September 2015 over Q2 September 2014.
Coal India is an organized state-owned coal mining corporate.
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