The Indian government has announced its intention to sell a stake of up to 3% in state-owned miner Coal India Ltd, it said in a filing on May 31.
The plan entails selling up to 1.5% of the company's stake in June 1-2, with an option to sell an additional 1.5% if desired.
As of March 31, the government currently possesses a 66.13% stake in the Kolkata-based company, as reported by exchange data.
To initiate the stake sale, a floor price of 225 rupees per share has been set, representing a discount of 6.7% from the closing price on the day.
In the ongoing financial year, the Indian government aims to generate 510 billion rupees ($6.17 billion) through the sale of its shares in state-run firms, as indicated in budget documents released in February.
However, in the previous fiscal year ending on March 31, the government fell short of its divestment target of 500 billion rupees, managing to accumulate approximately 352.93 billion rupees.
In March, the government successfully sold a 3.5% stake in Hindustan Aeronautics Ltd, an aerospace and defense company, for 29.01 billion rupees, as reported by the finance ministry's Department of Investment and Public Asset Management website.
Coal India is the largest coal-mining company in the country, accounting for 80% of its total output.
The company produced 57.57 million tonnes of coal in April, 78.7% of India's total production in the month.
(Writing by Alex Guo Editing by Emma Yang)
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