The NDA Govt on Friday Jan 30,2015 raised Rs 22,557.63 crore from the sale of its 10 %shareholding in Coal India (CIL).
The issue was however, under-subscribed in the retail investors segment;
Government-owned insurance companies bought huge proportion of the
shares, said sources.
The NDA Government offered the shares at an auction on the stock exchanges at a
floor price of Rs. 358 per share, which was 4.5 per cent less than the
closing price on Thursday Jan 29,2015.
The sale was concluded at an indicative price
of Rs 358.5 a share that was only slightly higher than the floor price.
Of the total proceeds raised, Rs 11,360.11 crore came from insurance
companies — both private sector and public sector including the
Government-owned Life Insurance Corporation, the official release said.
The NDA Government had offered a 5 % discount to retail investors
on price bids. Rs 1852.55 crore was received from retail investors, the
largest in any Government Offer for Sale (OFS) so far and Rs 603.11
crore from Mutual Funds. The retail portion was subscribed only about 44%
The CIL disinvestment, however, attracted the largest Foreign
Institutional Investors participation, Coal Secretary Aradhana Johri
told presspersons. This is likely to have exceeded Rs 5,000 crore, but
final figures were not available, Ms. Johri said.
With Friday’s divestment, the Centre’s shareholding in CIL stands at 79.65 per cent.
No comments:
Post a Comment