CCEA approves 10% disinvestment in Coal India
18 Nov 2015
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi has approved the disinvestment of 10 per cent paid up equity capital of Coal India Limited.
This implies divesting 63,16,36,440 shares of face value of Rs10 each out of the government of India's shareholding of 78.65 per cent (after adjusting one per cent equity to be offered for sale to the employees of CIL as per the CCEA decision in September 2014, which is under process of implementation) through public offering in the domestic market.
The paid up equity capital of the CIL is Rs6,316 crore. After the disinvestment of 10 per cent equity, the central government shareholding in CIL would come down to 68.65 per cent (with slight variation based on outcome of sale of one percent equity shares to employees of CIL).
The disinvestment transaction will be an offer for sale (OFS) of shares by the Promoters through the Stock Exchange Mechanism method as per the Securities and Exchange Board of India (SEBI) Rules and Regulations.