Asia
Indian Government to Sell Up To 2% Stake in Coal India
The Indian government plans to divest up to 2% stake in Coal India (NSE:COALINDIA, BOM:533278) through an offer for sale between May 27 and May 29, the mining behemoth said in a filing to the Indian stock exchanges on Tuesday.The government has fixed the floor price at 412 Indian rupees per equity share, representing a discount of nearly 10% to Coal India's Tuesday closing price of 455.90 rupees on the National Stock Exchange of India.Through the OFS, the government plans to sell 61.6 million equity shares, amounting to 1% of Coal India's paid-up equity capital, as the base offer. It has also retained an oversubscription option to offload an additional 61.6 million shares, bringing the total offer size to 123.2 million shares, or 2% of the company's equity.The share sale will open for non-retail investors on May 27, and on May 29, it will be open to retail investors, eligible employees, and non-retail investors who wish to carry forward unallotted bids.The OFS will be conducted through a separate window mechanism on both the BSE and NSE in accordance with the Securities and Exchange Board of India guidelines.Coal India said 25,000 equity shares may also be reserved for eligible employees, subject to regulatory approval, with employees allowed to bid for shares worth up to 500,000 rupees.
BOM:533278NSE:COALINDIA