CCEA approved disinvestment of 10 percent paid up equity capital in Coal India Limited
With this disinvestment in CIL, the Union Government is expecting to mop up around 20000 crore rupees.
The Cabinet Committee on Economic Affairs (CCEA) on 18 November 2015 approved the disinvestment of 10 percent paid up equity capital of Coal India Limited (CIL).
With this disinvestment in CIL, the Union Government is expecting to mop up around 20000 crore rupees. As at current market capitalisation, based on CIL stock price, 10 percent stake sale could fetch about 21137.71 crore rupees.
Highlights of the disinvestment
• This disinvestment implies divesting of 631636440 shares of Face Value of 10 rupees each out of the Union Government shareholding of 78.65 percent through public offering in the domestic market.
• This figure has been estimated after adjusting one percent equity to be offered for sale to the employees of CIL as per CCEA decision in September 2014, which is under process of implementation.
• The paid up equity capital of the CIL is 6316 crore rupees. After the disinvestment of 10 percent equity, the Government's shareholding in CIL would come down to 68.65 percent.
• The disinvestment transaction will be an Offer for Sale (OFS) of shares by the Promoters through the Stock Exchange Mechanism method as per the Securities and Exchange Board of India (SEBI) Rules and Regulations.
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