The government proposes to offload 3 percent stake in Coal India Limited (CIL) through the offer for sale (OFS) route. The offer will open on June 1 for non-retail investors, while retail investors can bid for it on June 2.
The divestment of the Centre's 3 percent equity also includes a Green Shoe option of 1.5 percent. The size of the OFS is around Rs 4,000 crore, and its floor price is set at Rs 225 per share. This is at a discount of nearly 7 percent from Coal India's current market price.
The proposal is to offload 9.24 crore shares amounting to a stake of 1.5 percent in the coal producer. Besides, there will be a green shoe option for selling an equal amount of stake in case of over-subscription, CIL said in a regulatory filing.
Under the OFS route, promoters in public companies can sell their shares and reduce their holdings in a transparent manner through the bidding platform for the exchanges.
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