The Indian government is proposing to sell up to a 3% stake in state-owned miner Coal India Ltd at a floor price of 225 rupees per share, it said in a notice on Wednesday.
The Offer for Sale (OFS) will be open for retail and non-retail investors on June 1 and 2.
The proposal is to offload 9.24 crore shares amounting to a stake of 1.5 per cent in the coal producer. Besides, there will be a green shoe option for selling an equal amount of stake in case of over subscription, according to a regulatory filing.
At the closing price of ₹241.20 apiece on BSE on Wednesday, the sale of 3 per cent stake in Coal India would be worth around ₹4,400 crore. “The seller proposes to sell up to 9,24,40,924 equity shares of face value of ₹10 each of the company (representing 1.50 per cent of the total paid-up equity share capital of the company) (base offer size), on June 1st and 2nd for retail investors and non-retail investors,” the filing said.
There will be an option to additionally sell 9,24,40,924 (1.50 per cent) equity shares of the company, it added.