Govt An­nounces Of­fer for Sale of CIL Shares

Govt stands to make .₹ 250 cr if the of­fer is fully sub­scribed by co’s em­ploy­ees

The Economic Times - - Economy: Macro, Micro & More - Our Bureau

Kolkata: The Cen­tre on Fri­day an­nounced an of­fer for sale of around 99 lakh shares of Coal In­dia (CIL) re­served for its em­ploy­ees. If fully sub­scribed, it will fetch the gov­ern­ment about ₹ 250 crore and bring down its hold­ing just below 75%, mak­ing it fully com­pli­ant with the list­ing rules that man­date at least 25% pub­lic hold­ing for listed com­pa­nies.

The cur­rent of­fer for em­ploy­ees is part of a di­vest­ment tranche con­cluded last week in which the Cen­tre di­vested 3.19% of its stake at the fi­nal price of ₹ 266 per share to fi­nan­cial in­sti­tu­tions and re­tail in­vestors. The sale re­duced the gov­ern­ment’s stake in the state-run miner to 75.13% from 78.32%.

The new of­fer for em­ploy­ees in­volves di­vest­ing an ad­di­tional 5% of the 3.19%, or 19.8 crore eq­uity shares, that was di­vested last week.

This 0.16% stake in CIL com­pris­ing around 99 lakh shares would be of­fered to em­ploy­ees at a dis­count of 5% on ₹ 266 a share; the fi­nal price ar­rived at in the of­fer for sale con­cluded last week. Em­ploy­ees will thus be of­fered the shares at ₹ 252.7 per eq­uity share in this round of sale.

If fully sub­scribed, the cur­rent of­fer would bring down the stake fur­ther to 74.97% from 75.13%. This round of sale will make the com­pany fully com­pli­ant with list­ing rules.

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