Indian Government Plans $1.06 Billion Stake Sale in Coal India
Govt likely to divest stake worth $1.06 billion in Coal India via OFS
Business Standard
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The Indian government is set to divest a 3-4% stake in Coal India, valued at ₹10,000 crore ($1.06 billion), through an offer-for-sale. This move comes as Coal India's shares fell 2.55% following the announcement. The government currently holds 63.13% of the company.
- 01The government plans to sell a 3-4% stake in Coal India.
- 02The stake is valued at ₹10,000 crore ($1.06 billion).
- 03Shares of Coal India dropped 2.55% after the news.
- 04The government held a 63.13% stake in Coal India as of March 31.
- 05The sale will likely occur at a discount to the market price.
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The Indian government is preparing to divest a 3-4% stake in Coal India, a state-run mining company, through an offer-for-sale (OFS) mechanism. This stake is valued at approximately ₹10,000 crore ($1.06 billion). Following the announcement, Coal India's shares experienced a decline of 2.55%. As of March 31, the government owned 63.13% of Coal India, according to data from LSEG. The offer-for-sale process allows major shareholders to sell their shares directly on the stock exchange, typically at a discount to the prevailing market price. Neither Coal India nor India's finance ministry has commented on the matter yet.
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This divestment could influence the stock market and investor sentiment towards Coal India, potentially affecting share prices and market dynamics.
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