Coal India shares fall up to 3% on this CNBC-TV18 exclusive on a potential stake sale

Shares of state-run Coal India Ltd. fell as much as 3% on Thursday, May 7, after CNBC-TV18 reported that a potential stake sale could be in the offing for India’s largest mining company.Sources with knowledge of the matter have told CNBC-TV18 that an Offer for Sale (OFS) is expected soon in Coal India, where the government is likely to divest stake ranging between 3% to 4%, which could fetch them a sum of ₹10,000 crore.

The government is likely to offer the shares at an attractive discount to the current market price, according to the sources.
In response to CNBC-TV18’s query, Coal India said that it has not received any communication from the government with regards to any potential OFS. A comment from the Department of Investment and Public Asset Management (DIPAM) and is awaited.At the end of the March quarter, the government had a 63.1% stake in Coal India.

Among the public shareholders, India’s mutual funds have a 9.5% stake in Coal India. Life Insurance Corporation of India acts as one of the biggest institutional shareholders with a 11.05% stake.

Foreign Portfolio Investors had a 8.38% stake, and as many as 25.3 lakh retail shareholders, or those with authorized share capital of up to ₹2 lakh, have a 3.82% stake in the company.

Shares of Coal India are trading 2% lower on Thursday after the newsbreak at ₹460.1. The stock has risen 22% over the last 12 months.