The government’s 3% stake sale in Coal India saw strong
response from institutional investors who bid for shares worth over ₹4,200 crore and the shares reserved for them got over-subscribed in the opening day on Wednesday Oct 31,2018
The two-day offer for sale (OFS) will open for retail investors on Thursday Nov 01,2018
This is the first big ticket share sale and first offer for sale (OFS) of the government in current fiscal. If fully subscribed, a three per cent Coal India (CIL) stake sale will fetch ₹5,000 crore to the exchequer.
Of the 14.89 crore share on offer, institutional investors put in bids for 15.83 crore till 3:25 pm. This is 1.06 times the shares reserved for institutional buyers, as per data available with NSE.
At the floor price of ₹266, the sale of 15.83 crore shares will amount to over ₹4,200 crore.
The number could go up further as bidding will continue till 3.30 pm. Updated data was not available till the time of releasing this report.
However, defying a broader market trend, Coal India scrip slipped to a low of Rs 263.80 during intra-day trade. The scrip closed down 3.73 per cent over previous close on the BSE at Rs 266.15 -- below the floor price of the OFS.
The BSE benchmark Sensex ended 550.92 points higher at 34,442.
The government is selling over 18.62 crore shares or three per cent in Coal India Ltd (CIL) at a floor price of ₹266 apiece.
The government also has an option to retain an over-subscription of another six per cent stake in the CIL OFS.
Bidding by retail investors will open on Thursday and a 5 per cent additional discount would be offered to these investors, who bid for shares worth not more than Rs 2 lakh.
At a floor price of Rs 266 apiece, sale of over 18.62 crore shares would fetch ₹5,000 crore to the exchequer.
If the additional 6 per cent stake or 37.24 crore shares are put on the block, then the government could get a further about ₹10,000 crore. Taken together, the nine per cent stake sale in CIL could fetch about ₹15,000 crore to the government.
The floor price was at a discount of nearly 4 per cent or ₹11 a share over Tuesday’s closing price of CIL scrip on the NSE.
The government had last sold 10 per cent stake in CIL through an OFS in January 2015. It had then mopped up about Rs 23,000 crore.
The government currently holds 78.32 per cent stake in Coal India.
The government has already raised over ₹ 10,028 crore through PSU stake sale, including by way of follow on offer of Bharat-22 ETF, and initial public offering of four PSUs -- RITES, IRCON, Mishra Dhatu Nigam Ltd (MIDHANI) and Garden Reach Shipbuilders.
The stake sale in Coal India would help the government move forward towards the ₹80,000 crore disinvestment target in current fiscal.
The two-day offer for sale (OFS) will open for retail investors on Thursday Nov 01,2018
This is the first big ticket share sale and first offer for sale (OFS) of the government in current fiscal. If fully subscribed, a three per cent Coal India (CIL) stake sale will fetch ₹5,000 crore to the exchequer.
Of the 14.89 crore share on offer, institutional investors put in bids for 15.83 crore till 3:25 pm. This is 1.06 times the shares reserved for institutional buyers, as per data available with NSE.
At the floor price of ₹266, the sale of 15.83 crore shares will amount to over ₹4,200 crore.
The number could go up further as bidding will continue till 3.30 pm. Updated data was not available till the time of releasing this report.
However, defying a broader market trend, Coal India scrip slipped to a low of Rs 263.80 during intra-day trade. The scrip closed down 3.73 per cent over previous close on the BSE at Rs 266.15 -- below the floor price of the OFS.
The BSE benchmark Sensex ended 550.92 points higher at 34,442.
The government is selling over 18.62 crore shares or three per cent in Coal India Ltd (CIL) at a floor price of ₹266 apiece.
The government also has an option to retain an over-subscription of another six per cent stake in the CIL OFS.
Bidding by retail investors will open on Thursday and a 5 per cent additional discount would be offered to these investors, who bid for shares worth not more than Rs 2 lakh.
At a floor price of Rs 266 apiece, sale of over 18.62 crore shares would fetch ₹5,000 crore to the exchequer.
If the additional 6 per cent stake or 37.24 crore shares are put on the block, then the government could get a further about ₹10,000 crore. Taken together, the nine per cent stake sale in CIL could fetch about ₹15,000 crore to the government.
The floor price was at a discount of nearly 4 per cent or ₹11 a share over Tuesday’s closing price of CIL scrip on the NSE.
The government had last sold 10 per cent stake in CIL through an OFS in January 2015. It had then mopped up about Rs 23,000 crore.
The government currently holds 78.32 per cent stake in Coal India.
The government has already raised over ₹ 10,028 crore through PSU stake sale, including by way of follow on offer of Bharat-22 ETF, and initial public offering of four PSUs -- RITES, IRCON, Mishra Dhatu Nigam Ltd (MIDHANI) and Garden Reach Shipbuilders.
The stake sale in Coal India would help the government move forward towards the ₹80,000 crore disinvestment target in current fiscal.
No comments:
Post a Comment