At the floor price of ₹225 a share, the government could get over ₹4,100 crore
Disinvestment of Coal India got a good response from retail investors on Friday with the number of applications received exceeding the shares reserved for them. Non-retail investors have already shown a great response to the process.
“The second day of CIL offer for sale (OFS) closed with a good interest from retail investors with 1.4 times subscription,” Tuhin Kanta Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM), tweeted. Non-retail investors bid 3.46 times the base size (over 9.24 crore shares). The government has already decided to exercise the green-shoe option of selling additional 9.24 crore shares, taking the total offer size to 18.49 crore shares.
At the floor price of ₹225 a share, the government could get over ₹4,100 crore. Post disinvestment, the government’s stake will come down to 63.13 per cent from 66.13 per cent. Out of the 18.49 crore shares offered, around 1.85 crore are reserved for retail investors, while the remaining are for non-retail, including institutional investors.
The share price of Coal India closed at ₹230.90, up 0.15 per cent, on Friday.
This is the first major disinvestment in the current fiscal. The government aims to get ₹51,000 crore through selling its stake in various Central public sector enterprises (CPSEs), which also includes strategic disinvestment. All eyes are now on IDBI bank, in which both the government and LIC plans to sell part of their stake with management control. Apart from this, divestment of companies such as the Shipping Corporation of India, Concor, Pawan Hans are also in the pipeline.