Centre to offer 99 lakh Coal India shares to staff at 5% discount

Kolkata: The Centre on Friday announced an offer for sale of 99 lakh shares of Coal India reserved for its employees at Rs 252.7 per share.

It is expected to fetch the government Rs 250 crore.

The current offer for employees is part of the divestment tranche which concluded last week in which the Centre divested 3.19 per cent of its stake at a final price of Rs 266 per share to financial institutions and retail investors.

The current offer for employees involves divesting an additional 5 per cent of the 3.18 per cent that was divested last week. It would be offered to employees at a discount of 5 per cent on the final price arrived at the offer for sale that concluded last week.

The Centre is likely to raise Rs 5,267 crore through sale of 19.8 crore equity shares of the company from the recently concluded offer for sale. After last weeks sale, the government will continue to hold a majority stake of 75.13 per cent in the company.

In the last offer, retail Investors were offered a discount of 5 per cent on the cut-off price. Institutional investors bid for Rs 4,214 crore against the base offer size of Rs 3,963 crore. The retail portion, which was 20 per cent of the total offer size, was subscribed 1.56 times.

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