Government likely to sell 10% stake in Coal India

The government has announced plans to sell a 10-per cent stake in Coal India (CIL), sending the company's shares down 17 per cent in six days.

The CIL stock has fallen by 17 per cent from Rs443 to Rs366 against a 1.7 per cent decline in Sensex.

A PTI report suggested that the cabinet may consider sale of a 5-10 per cent stake in Coal India that could fetch up to Rs24,800 crore to the exchequer.

The CIL stake sale proposal may be placed before the cabinet, headed by Prime Minister Narendra Modi, the report added, quoting sources.

Shares of Coal India dipped 7 per cent to Rs366, extending an over 10-per cent decline in the past one week on the BSE, following reports of government's stake sale plan.

The stock has fallen 17.4 per cent in the past six trading sessions, from Rs443 on 4 August 2015, compared to a 1.7 per cent decline in the S&P BSE Sensex.

The government had, in January 2015, sold 631.64 million equity shares forming 10-per cent stake in the Maharatna PSU at an average price of Rs357 per share, to raise Rs22,557 crore.

The board of directors of the company is scheduled to meet today to consider, approve and take on record unaudited financial results of the company for the first quarter ended 30 June 2015.