Coal India fell 3.55% to Rs 283.55 at 14:42 IST on BSE, extending recent fall triggered by media reports that the government is likely to dilute 5% stake in the company via follow-on public offer in December 2013.
Meanwhile, the BSE Sensex was down 202.50 points, or 1%, to 20,475.41.
On BSE, 3.27 lakh shares were traded in the counter compared with average volume of 2.44 lakh shares in the past one quarter.
The stock hit a high of Rs 297.40 and a low of Rs 280.70 so far during the day. The stock hit a 52-week high of Rs 374.05 on 3 December 2012. The stock hit a record low of Rs 238.35 on 30 August 2013.
The stock had outperformed the market over the past one month till 10 October 2013, rising 1.94% compared with the Sensex's 1.38% rise. The scrip had, however, underperformed the market in past one quarter, rising 1.34% as against Sensex's 5.07% rise.
The large-cap company has an equity capital of Rs 6316.36 crore. Face value per share is Rs 10.
According to media reports on Monday, 7 October 2013, Coal India's 5% follow-on public offer (FPO) is likely to hit the market by the second week of December. The government, which currently holds a 90% stake in Coal India, intends to sell more than 31.50 crore shares through an offer for sale (OFS) through the stock exchanges. Shares will be allotted to Coal India employees at a 5% discount to the lowest cut-off price. A maximum of 10% of the offer will be kept for employees, reports suggested.
Shares of Coal India tumbled 3.19% to Rs 300.10 on Monday, 7 October 2013, on concerns that the floor price for the stake sale will be set at a discount to the ruling market price. The stock has fallen 8.53% from Rs 310 on 4 October 2013.
Meanwhile, Coal Minister, Sriprakash Jaiswal was quoted by media as saying today, 11 October 2013, that the Cabinet Committee on Economic Affairs (CCEA) would decide on the disinvestment of Coal India.
However, the Minister said that the decision on buyback of shares or offering special dividend would be decided by Coal India board and the Government has no role to play.
The government has set a target of raising Rs 40000 crore by selling its stake in public sector units (PSUs) in the year ending March 2014.
Coal India and its subsidiaries achieved 99% of targeted production at 33.16 million tonnes in September 2013. The company and its subsidiaries achieved 103% of targeted offtake at 35.79 million tonnes in September 2013.
Coal India's consolidated net profit fell 16.51% to Rs 3731.04 crore on 0.64% rise in total income to Rs 18692.03 crore in Q1 June 2013 over Q1 June 2012.
Coal India is the largest coal producer in the world.
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