The government is stepping up its divestment drive as it will sell 3 percent stake in Coal India on Wednesday for Rs 266 a share through offer for sale (OFS) route. The sale is likely to fetch the exchequer Rs 5,000 crore.
The government will offer an additional 6 percent stake in case of over-subscription.
The two-day OFS will open on Wednesday for institutional bidders. Retail investors, who can bid for the OFS on Thursday, will get an additional 5 percent discount.
If the entire 9 percent stake in Coal India Ltd (CIL) could be sold off, then it could fetch the government about Rs 15,000 crore.
This is very sensible by the government, said SP Tulsian, market expert.
"What used to happen was that we used to see the rush for mobilizing the target divestments in the last quarter, but government not panicked and in fact because of the good demand for coal and natural resources, I think that Rs 266 per share pricing seems to be quite correct," he said.
On the retail participation, Tulsian said this is a very good opportunity for the retail investors to participate in the growing business of coal and natural resources.With inputs from PTI.