Comments
The centre’s offer for a 3 per cent stake-sale in Coal India was oversubscribed.
The tweet of Secretary, Department of Investment and Public Asset Management, Atanu Chakraborty, said, “OFS (offer-for-sale) of Coal India Ltd for sale of 3 per cent GoI (Government of India) shareholding was oversubscribed in non-retail category (106.33 per cent subscription).”
“The option for retaining over-subscription (is) exercised. Bidding for retail category to take place tomorrow at a discount of 5 per cent,” the tweet added.
Shares of Coal India closed lower for the second subsequent trading day on Wednesday. On Tuesday, the scrip had closed 3.88 per cent lower at ₹275.90 a share. CIL’s share price fell 3.57 per cent on Wednesday to ₹266 a scrip on the National Stock Exchange. The floor price for the offer-for-sale — which opened on Wednesday — was ₹266 a share of ₹10 each. Under this offering, the Centre is looking to offload at least 18,62,22,275 shares. There is also a green-shoe option of an additional 6 per cent that could be sold if there is strong demand from various investor categories, according to the regulatory filing by CIL with the stock exchanges on Tuesday.
As of September 30, the Centre held 78.32 per cent stake in CIL. The offer-for-sale has helped CIL achieve the minimum public shareholding norm stipulated by the capital market regulator SEBI.
Retail investors will be allocated shares at a discount of 5 per cent to the cut-off price, the CIL statement added. Employees of the company will be offered a discount of up to 5 per cent (to the cut-off price in the retail category of the offer) subsequent to completion of the offer.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.