Coal India offer for sale: Institutional buyers' portion over-subscribed; bids worth over Rs 4,200 cr received


New Delhi: The federal government’s three p.c stake sale in Coal India noticed a powerful response from institutional buyers who bid for shares value over Rs 4,200 crore and the shares reserved for them bought over-subscribed within the opening day on Wednesday.

The 2-day provide on the market (OFS) will open for retail buyers tomorrow.

That is the primary big-ticket share sale and first provide on the market (OFS) of the federal government in present fiscal. If absolutely subscribed, a 3 p.c Coal India (CIL) stake sale will fetch Rs 5,000 crore to the exchequer.

Of the 14.89 crore share on provide, institutional buyers put in bids for 15.83 crore until 3:25pm. That is 1.06 occasions the shares reserved for institutional patrons, as per knowledge out there with NSE.

Representational picture. Reuters.

On the flooring value of Rs 266, the sale of 15.83 crore shares will quantity to over Rs 4,200 crore.

The quantity might go up additional as bidding will proceed until 3.30 pm. Up to date knowledge was not out there until the time of releasing this report.

Nevertheless, defying a broader market pattern, Coal India scrip slipped to a low of Rs 263.80 apiece throughout intra-day commerce. The scrip closed down 3.73 p.c over the earlier shut on the BSE at Rs 265.60 — beneath the ground value of the OFS.

The BSE benchmark Sensex ended 550.92 factors up at 34,442.

The federal government is promoting over 18.62 crore shares or three p.c in Coal India Ltd (CIL) at a flooring value of Rs 266 apiece.

The federal government additionally has an choice to retain an over-subscription of one other six p.c stake within the CIL OFS.

Bidding by retail buyers will open Thursday and a 5 p.c extra low cost could be provided to those buyers, who bid for shares value no more than Rs 2 lakh.

At a flooring value of Rs 266 apiece, the sale of over 18.62 crore shares would fetch Rs 5,000 crore to the exchequer.

If the extra 6 p.c stake or 37.24 crore shares are placed on the block, then the federal government might get an additional about Rs 10,000 crore. Taken collectively, the 9 p.c stake sale in CIL might fetch about Rs 15,000 crore to the federal government.

The ground value of Rs 266 a share was at a reduction of practically Four p.c or Rs 11 a share over Tuesday’s closing value of CIL scrip on the NSE.

The federal government had final offered 10 p.c stake in CIL by an OFS in January 2015. It had then mopped up about Rs 23,000 crore.

The federal government at present holds 78.32 p.c stake in Coal India.

The federal government has already raised over Rs 10,028 crore by PSU stake sale, together with by means of follow-on provide of Bharat-22 ETF, and preliminary public providing of 4 PSUs — RITES, IRCON, Mishra Dhatu Nigam Ltd (MIDHANI) and Backyard Attain Shipbuilders.

The stake sale in Coal India would assist the federal government transfer ahead in direction of the Rs 80,000 crore disinvestment goal in present fiscal.



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