Coal news and updates

Cabinet approves 10% disinvestment in Coal India

India Coal Market Watch

 November 19: The Cabinet Committee on Economic Affairs (CCEA) approved a 10% disinvestment in Coal India Limited. Coal Minister Piyush Goyal said that the timing of the stake sale will be decided by Finance Minister Arun Jaitley.

This implies divesting of 63,16,36,440 shares of face value of Rs 10 each out of the Government of India shareholding of 78.65% through public offering in the domestic market. After the disinvestment of 10% equity, the GoI’s shareholding in CIL would come down to 68.65% (with slight variation based on outcome of sale of 1% equity shares to employees of CIL).

The value of the stake sale would be around Rs 20,000 crore. The central government has a target to raise Rs 70,000 crore through disinvestments. So far, the government raised only Rs 12,700 crore which is less than 20% of the target.

The disinvestment transaction will be an offer for sale (OFS) of shares by the promoters through the stock exchange mechanism method as per the Securities and Exchange Board of India (SEBI) Rules and Regulations.