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New UserCentre to finalise banker on November 26 for Coal India stake sale
24 Nov 2015
The finance ministry has invited seven merchant bankers to make a presentation on Coal India's divestment on Thursday. The financial bids will be opened immediately after the process is complete and the Department of Divestment will select the merchant banker, officials said.
The merchant bankers include Axis Capital, HSBC Securities and Capital Markets, Kotak Mahindra Capital, Edelweiss Financial Services, SBI Capital Markets, JM Financial Institutional Securities and ICICI Securities.
The government is hoping to raise about Rs 21,000 crore from a 10 per cent stake sale in the monopoly miner and is likely to approach the market within a month. The Cabinet had on November 11 cleared an additional 10 per cent stake sale in Coal IndiaBSE -0.15 % (CIL).
According to officials, the Centre is likely to approach the market within a month and offer about 63.16 crore shares. Going by the closing price of Rs 332 on the National Stock Exchange on November 23, the government is likely to add about Rs 21,000 crore to its kitty.
Since foreign institutional investors remain closed during the festive season in December, the government is likely to complete the current round of stake sale before that time, officials said.
Meanwhile, the workers' unions at CIL are scheduled to meet on December 1 to decide on their course of action against this round of stake sale. The Congress-backed INTUC is keen on declaring a strike and is in talks with other unions so that they too join the protest.
Officials said CIL staff and retail investors are likely to get a discount on the discovered price, an option that was not offered to employees the last time the government divested part of its stake in the miner.
According to recent reports eight investment banks including HSBC, ICICI Securities and SBI Capital, Axis Capital, Elara Capital, Edelweiss, Kotak Investment Banking and JM Financial were in the race for managing the sell-off.