New Delhi: The Disinvestment Department will on Thursday shortlist five merchant bankers for ma aging the Rs 21,000 crore stake sale in Coal India Ltd. As many as seven merchant bankers, including SBI Capital, HSBC Securities and J M Financial, have bid for managing the government’s 10 per cent share sale of the Maharatna PSU.
Other merchant bankers who would make presentation before the Department of Disinvestment on November 26 include Kotak Mahindra Capital, Axis Capital, ICICI Securities and Edelweiss Financial Services. The government will appoint up to five merchant bankers to manage the stake sale, according to DoD website.
Shares of Coal India today closed at Rs 332.35, down 0.08 per cent on the BSE. At the current market prices, sell of 63.16 crore shares, or 10 per cent stake, would bring in around Rs 20,900 crore. The government had last sold 10 per cent in the blue-chip on January 31, 2015 at the floor price of Rs 358 apiece and garnered Rs 22,557 crore.
The government had earlier extended deadline for appointment of merchant bankers for the share sale in Coal India after global investment banks flagged concerns over the company allegedly not meeting green commitments. According to sources, the concerns have now been addressed.
CIL was listed on November 4, 2010 and its market value today stands at over Rs 2 lakh crore. Its stake sale would help the government inch towards the PSU stake sale target of Rs 41,000 crore in the current fiscal. So far the government has been able to raise Rs 12,600 crore through stake sale in four PSUs.
Of the overall disinvestment target of Rs 69,500 crore, the government has budgeted to raise Rs 41,000 crore through minority stake sale in PSUs and another Rs 28,500 crore through strategic stake sale.
