The government has shortlisted five Indian merchant bankers, including JM Financial, SBI Capital and ICICI Securities, for managing the over Rs21,000-crore stake sale in Coal India Ltd.
Besides, Axis Capital and Kotak Mahindra Capital have also been selected for managing the stake sale of the 'Maharatna' public sector undertaking, reports said.
This would be the first big PSU disinvestment to be managed by only Indian investment bankers.
The union cabinet had, last week, approved 10 per cent stake sale in Coal India.
As many as seven merchant bankers had bid for managing the disinvestment of Coal India.
Shares of Coal India on Thursday closed at Rs335.90, up 1.07 per cent, on the Bombay Stock Exchange. At the current market prices, sale of 63.16 crore shares, or 10 per cent stake, would bring in around Rs21,200 crore.
The government had last sold 10 per cent in the blue-chip on 31 January, at the floor price of Rs358 apiece and garnered Rs22,557 crore.
It had earlier extended deadline for the 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.
The government currently holds 79.65 per cent in Coal India. It was listed on 4 November 2010 and its market value stands at over Rs2,00,000 crore.
The stake sale would help the government march towards the PSU stake sale target of Rs41,000 crore in the current fiscal. So far the government has been able to raise Rs12,600 crore through stake sale in four PSUs.
Of the overall disinvestment target of Rs69,500 crore, the government had budgeted to raise Rs41,000 crore through minority stake sale in PSUs and another Rs28,500 crore via strategic stake sale.