INVC NEWS
Mumbai – : The Indian government, under the leadership of Prime Minister Narendra Modi, has put forth a special plan concerning Coal india limited, the country’s largest coal company. As part of this plan, the government intends to sell a three percent stake in Coal india limited through an offer for sale (OFS), beginning on June 1.
The Stake Sale Plan
The government’s stake sale in Coal india limited is expected to yield a minimum of Rs 4,158 crore for the state exchequer. This will mark the government’s first stake sale in a public sector undertaking in the current financial year. The floor price for the two-day OFS has been set at Rs 225 per share, representing a discount of 6.7 percent to the last stock price in the market.
Offer for Sale (OFS)
Coal india limited has officially announced the details of the OFS through a stock exchange filing. The offer will be open to both retail and non-retail investors, with the retail segment having a separate timeframe for participation. The OFS will be available for retail and non-retail investors on June 1 and 2, respectively.
Current Ownership of Coal india limited
As of now, the government holds a majority stake of 66.13 percent in Coal india limited. The stake sale will result in a reduction of the government’s ownership by 1.5 percent, amounting to 9.24 crore shares. In case of oversubscription, there will be a green shoe option to sell an equal amount of stake.
Gautam Adani’s Potential Acquisition
There are rumors circulating that Gautam Adani, the prominent Indian billionaire and chairman of the Adani Group, may be interested in acquiring the stake in Coal india limited. If these speculations turn out to be true, the Adani Group will become the largest shareholder in the company, signaling a significant shift in ownership dynamics !
Conclusion
The Modi government’s decision to sell a stake in Coal india limited through an OFS marks a noteworthy development in the country’s coal industry. The move aims to generate substantial revenue for the state exchequer and attract potential investors. Furthermore, the potential involvement of Gautam Adani and the Adani Group adds an intriguing element to the situation, with the potential for transformative changes in India’s property landscape.
FAQs
- What is the purpose of the stake sale in Coal india limited?
The stake sale is part of the Indian government’s plan to generate revenue and attract investment in the country’s coal industry.
- How much stake will the government sell in Coal india limited?
The government plans to sell a three percent stake in Coal india limited through the offer for sale.
- What is the floor price for the stake sale?
The floor price for the offer for sale (OFS) has been set at Rs 225 per share.
- Who can participate in the OFS?
Both retail and non-retail investors can participate in the offer for sale. However, they will have separate timeframes for participation.
- What are the potential implications of Gautam Adani’s acquisition of the stake?
If Gautam Adani and the Adani Group acquire the stake in Coal india limited, they will become the largest shareholders in the company, which could lead to significant changes in India’s property landscape.
