The Centre has fixed a bid price of ₹358 for the shares it will sell in Coal India (CIL). On Friday, the Government will dilute 5 per cent of its stake — 31.58 crore shares — in the public sector undertaking and may offer an additional 5 per cent through a ‘greenshoe option’.
At this floor price, the Government can get up to ₹22,500 crore (if the greenshoe option is exercised).
The price is at a 4.6 per cent discount to CIL scrip’s Thursday closing price of ₹375.15 apiece on the BSE.
CIL’s share sale is not just the largest offer so far, but also the first one to reserve as much as 20 per cent of the shares on sale for retail investors. They will also get a 5 per cent discount. SEBI prescribes a minimum 10 per cent reservation for retail investors.
Out of over 63.16 crore shares (including the greenshoe option), retail investors can get up to 12.63 crore shares.
Retail investors may also get a tax benefit through the Rajiv Gandhi Equity Savings Scheme as CIL, being a Maharatna, qualifies for it.
However, the maximum deduction available for tax benefit under the scheme is ₹25,000 and, for this, an investor will need to put in ₹50,000.
At the floor price of ₹358, a retail investor with ₹2 lakh will be able to bid for 558 shares. The bids can be placed during the regular trading time between 9-15 a.m. and 3-30 p.m.on BSE and NSE.