Union Government on 30 January 2015 divested 10 percent of its stake in Maharatna Coal India Limited (CIL). With this, government’s share in CIL came down to 79.65 percent.
Government divested 63.16 crores shares (10 percent) of CIL through offer for sale (OFS) at a floor price of 358 rupees per share and realized an amount of 22557.63 crore rupees through the disinvestment process.
The offer of CIL was oversubscribed by a magnitude of 5 percent of the total shares offered for sale. That is, CIL received a total bid for 67.5 crore shares as against the 63.16 crore shares offered for sale.
This was the largest ever disinvestment among Central Public Sector Enterprises (CPSEs) and the stake sale exceeds the previous record of over 15000 crore rupees realized in 2010 through the initial public offering (IPO) of CIL.
With this huge collection of disinvestment, the government is now all set to meet its fiscal deficit target of 4.1 percent of GDP which it set in the Union Budget 2014-15.
Government in its Union Budget 2014-15 had set a target of 43425 crore rupees through disinvestment of government-owned firms.
In the first disinvestment of the financial year 2014-15, the government collected 1700 crore rupees through the sale of Steel Authority of India (SAIL) stocks, which was largely picked up by State Bank of India (SBI) and Life Insurance Corporation (LIC).
Who: Union Government
When: 30 January 2015