New Delhi: The Government ‘s 10 per cent stake sale in bluechip coal India to raise an estimation Rs 22,600 crores. The total issue of 31.58 crore shares got bid for over 45.02 lakh shares in opening trade as per the NSE (National Stock Exchange) data.
The retail category of 12.63 crore shares got bids for over 7.20 lakh shares.
The general category of over 50.53 crore shares were subscribed nearly 0.75 per cent. On the BSE, the company’s scrip hit a low of Rs 360 down 3.90 per cent over its previous close, soon after the start of market hours today.
Coal India’s FPO has hit the market. Coal India is the second company under the government’s disinvestment programme.
In order to achieve the fiscal deficit target Divestment of Coal india will play a crucial role.
Finance Minister Arun Jaitley has said that As far as divestment is concerned Government is committed divestment programme and a lot of activity is expected.
2015 is not a good year to sell energy stocks, whether Coal India or ONGC, but given weak tax revenue growth, the fiscal deficit target of 4.1 percent in 2014-15 is unachievable without selling stake these stocks at rock-bottom prices.
However, Government is making all efforts to attract investors. The government decision of not appealing against a high court order in Vodafone case will help in lifting the sentiment of global investors.
With only Rs 1,715 crore being raised this fiscal by way of disinvestment, the government is looking at aggressively selling stakes in public sector firms to help meet its fiscal deficit target of 4.1 percent of GDP for the current Fiscal year.