India's biggest ever share sale begins, govt to raise around Rs 22, 600 croreNew Delhi: The sale of union government's 10 per cent stake sale in bluechip Coal India has begun today.The central govt hopes to raise an estimated Rs 22, 600 crore from this sale. The share
New Delhi: The sale of union government's 10 per cent stake sale in bluechip Coal India has begun today.
The central govt hopes to raise an estimated Rs 22, 600 crore from this sale. The share sale has been dubbed as the biggest ever offering in the domestic equity market.
As per the NSE data, the total issue of 31.58 crore shares got bids for over 45.02 lakh shares by 1005 hours
The retail category of 12.63 crore shares got bids for over 7.20 lakh shares (0.57 per cent). The general category of over 50.53 crore shares were subscribed nearly 0.75 per cent. On the BSE, the company's scrip hit a low of Rs 360.50, down 3.90 per cent over its previous close, soon after the start of market hours today.
On the BSE, the company's scrip hit a low of Rs 360.50, down 3.90 per cent over its previous close, soon after the start of market hours today.
At the floor price, the total 10 per cent stake can fetch the government Rs 22,600 crore, although retail investors would get a five per cent price discount and 20 per cent shares worth over Rs 4,000 crore would be reserved for them.
This would exceed the existing record amount of over Rs 15,000 crore raised through a public offer, which was also by CIL when it had entered the market with its IPO in 2010. CIL shares were sold at a price of Rs 245 in the IPO, which was oversubscribed more than 15 times.
Coal India would be the second PSU to hit the markets under the government's disinvestment programme in the current fiscal, the first being SAIL in which shares worth about Rs 1,700 crore were sold.
In the past, government share sales that have met with little institutional appetite. State-owned Life Insurance Corporation of India, India's largest equity investor, picked up almost three-quarters of the shares in SAIL sold by the government in December.
Post the share sale, government's stake in Coal India will come down to 80 per cent. The share sale started at 9.15 am and will end at 3.30 pm on Friday. The total issue of 31.58 crore shares got bids.