Sources with knowledge of the matter have told CNBC-TV18 that an Offer for Sale (OFS) is expected soon in Coal India, where the government is likely to divest stake ranging between 3% to 4%, which could fetch them a sum of ₹10,000 crore.
The government is likely to offer the shares at an attractive discount to the current market price, according to the sources.
In response to CNBC-TV18’s query, Coal India said that it has not received any communication from the government with regards to any potential OFS. A comment from the Department of Investment and Public Asset Management (DIPAM) and is awaited.
At the end of the March quarter, the government had a 63.1% stake in Coal India.
Among the public shareholders, India’s mutual funds have a 9.5% stake in Coal India. Life Insurance Corporation of India acts as one of the biggest institutional shareholders with a 11.05% stake.
Foreign Portfolio Investors had a 8.38% stake, and as many as 25.3 lakh retail shareholders, or those with authorized share capital of up to ₹2 lakh, have a 3.82% stake in the company.
Shares of Coal India are trading 2% lower on Thursday after the newsbreak at ₹460.1. The stock has risen 22% over the last 12 months.
