An Inter—ministerial Group (IMG), has approved 10 per cent equity sale in Coal India which is expected to fetch over Rs 17,000 crore to the government.
At present, the government holds 90 per cent stake in Coal India Ltd (CIL).
“Yesterday, the IMG meeting took place to chalk out the process. The panel has given its nod for the government’s 10 per cent stake in CIL,” an official told PTI.
However, the mode of disinvestment of the PSU could not be decided — whether the share sale would be through Offer For Sale (OFS) or buyback taking into the consideration the market conditions, he said.
“The 10 per cent stake sale may be split into Offer for Sale (OFS) and buyback. The DoD will soon decide the method of the government’s share sale in the company,” he added.
The IMG, headed by Disinvestment Secretary Ravi Mathur, is guiding the process of disinvestment of government’s equity in CIL.
Shares of Coal India closed at Rs 308.90, down 1.09 per cent, on the BSE.