Sources told CNBC-TV18 on May 31 that the Center is likely to sell a stake in India’s largest coal miner, Coal India Limited (CIL), through an offer for sale (OFS) on BSE and NSE on Thursday (June 1). Bharat shares declined 1.29% on the BSE during Wednesday’s closing session. The estimated value of the OFS is approximately 4,000 crore, and the floor price has been set at 225 per share, representing a discount of approximately 7% from Wednesday’s closing price of 241.2.
According to an old Bloomberg report in November 2022, the government will sell 5 to 10 percent of its stake in CIL, Hindustan Zinc, and Rashtriya Chemicals and Fertilizers (RCF) in the fourth quarter of FY23 to stimulate the stock market and increase revenue. was planning.
At present, the central government holds 66.13 percent of the stake in the PSU, while the general public holds 33.17 percent. In Q4FY23, Coal India reported its promoters’ shareholding at 66.13%, FII at 7.84%, DII at 21.05%, the government at 0.09%, and the general public at 4.90%.
Commenting on the announcement of Coal India’s offload stake, AR Ramachandran, Co-Founder and Trainer at Tips2Trades, said, “The current OFS is perfectly timed from the government’s point of view as the share price of Coal India is on the daily chart. Higher and a correction in price. Due. Investors looking for short-term returns can subscribe at the above-mentioned floor price for a target of 256.”
Shares of Coal India today closed at 241.20 on BSE, down 1.29% from their previous closing price of 244.35. The stock touched a 52-week high of ₹263.30 on (09/11/2022) and a 52-week low of ₹174.60 on (20/06/2022).