India plans to sell up to 3% stake in Coal India Ltd at a floor price of 225 rupees per share, according to a notice by the government.
The government is proposing to sell up to a 3% stake in state-owned miner Coal India Ltd at a floor price of 225 rupees per share, it said in a notice on Wednesday.
The Offer for Sale (OFS) will be open for retail and non-retail investors on June 1 and 2.
The proposal is to offload 9.24 crore shares amounting to a stake of 1.5 per cent in the coal producer. Besides, there will be a green shoe option for selling an equal amount of stake in case of over subscription, according to a regulatory filing.
At the closing price of ₹241.20 apiece on BSE on Wednesday, the sale of 3 per cent stake in Coal India would be worth around ₹4,400 crore. “The seller proposes to sell up to 9,24,40,924 equity shares of face value of ₹10 each of the company (representing 1.50 per cent of the total paid-up equity share capital of the company) (base offer size), on June 1st and 2nd for retail investors and non retail investors,” the filing said.
There will be an option to additionally sell 9,24,40,924 (1.50 per cent) equity shares of the company, it added.