Indian govt to divest 9% of Coal India equity
KOLKATA (miningweekly.com) – In a sudden move, the Indian government on Wednesday announced that it would disinvest 9% of its equity holding in Coal India Limited (CIL) through an offer for sale (OFS) to institutional and retail investors.
The sale of 9% equity from total existing government holding of 78.32% was expected to net the government an estimated $2-billion assuming full subscription of the OFS at the floor price fixed at Rs 266 ($3.6) a share.
The OFS has been scheduled to open on Wednesday for institutional and retail investors.
The disinvestment in CIL was significant as the regulator, Securities and Exchange Board of India had stipulated that all government companies would have to mandatory bring down government-held equity to 75%, and the deadline for which passed in August 2018.
“Twenty per cent of the offer size shall be reserved for retail investors, subject to receipt of valid bids. No single bidder other than mutual funds and insurance companies shall be allocated more than 25% of the offer shares,” CIL said in a statement.
CIL said that under the greenshoe option, the company would have the option to offer 6% of equity shares of the company through over-subscription and collectively this would represent 9% of the total paid up capital of the company as on October 30, 2018.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation