Indian Coal Stock Slide Threatens Government Stake Sale Plan

Bloomberg reported that the falling stocks of Coal India Ltd. (NSE:COALINDIA) have imperiled Indian Prime Minister Narendra Modi’s plan to sell 10 percent of the company.

As quoted in the market news:

Modi, who pledged everything from cheaper prices and better infrastructure to round-the-clock electricity and water in his march to power last year, aims to raise 584 billion rupees ($9.4 billion) from share sales to cut the budget deficit to the lowest in seven years. While Coal India, which has 623 billion rupees in cash, appears an easy target, some investors in the world’s biggest miner of the fuel are disappointed with its performance and wary of its promise to double production in the next five years.

Deven Choksey, managing director at Mumbai-based brokerage KR Choksey Shares & Securities Pvt., stated:

Selling Coal India in this market would mean a distress sale. The government has to have a different plan.

Click here for the full Bloomberg report