Coal India gains on govt stake sale report

Reuters Market Eye - Shares in Coal India Ltd gain as much as 4.1 percent after Bloomberg news reported that the government plans to raise 200 billion rupees by selling part of its stake in the company.

The report, quoting a draft finance ministry proposal, said the government plans to sell a 5 percent stake to the public and a similar holding to the company.

A senior finance ministry official with direct knowledge of the matter told Reuters the government was looking to raise 180-200 billion rupees via the stake sale, but was yet to decide the mode.

A senior Coal India official said, "We are not aware of this. Nothing has come to us."

 

At 2.32 p.m. shares were up 2.95 percent at 310.45 rupees.

(Reporting by Abhishek Vishnoi, Rajesh Kumar Singh and Malini Menon)