Govt Announces Offer for Sale of CIL Shares
Govt stands to make .₹ 250 cr if the offer is fully subscribed by co’s employees
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.