Coal India disinvestment: Retail portion subscribed 1.4 times, non retail 3.5 times

disinvestment India coal It got a good response from retail investors on Friday with the number of orders received exceeding the number of shares reserved for them. Non-individual investors have shown great response to this process.

“Day 2 of CIL Offer for Sale (OFS) ended with good interest from retail investors with 1.4x subscription,” tweeted Tohin Kanta Pandey, Secretary, Department of Investment and General Asset Management (DIPAM). Non-retail investors bid 3.46 times the underlying volume (over Rs.9.24 crore share). The government has already decided to exercise the green shoe option to sell an additional Rs 9.24 crore, taking the total offer size to Rs 18.49 crore shares.

At the minimum share price of Rs 225, the government can get more than Rs 4,100 crore. After divestment, the government’s share will drop to 63.13 percent from 66.13 percent. Of the Rs 18.49 crore shares on offer, about Rs 1.85 crore is reserved for retail investors, while the remainder is for non-individuals, including institutional investors.

Coal India share price closed at INR 230.90, up 0.15 percent on Friday.

This is the first major withdrawal of investment in the current public finances. The government aims to get Rs 51,000 crore by selling its stake in several Central Public Sector Enterprises (CPSEs), which also includes strategic divestment. All eyes are now on IDBI Bank, as both the government and LIC plan to sell part of their stake with management controlling. Apart from this, liquidation of companies like Shipping Corporation of India, Concor and Pawan Hans is also in the pipeline.