Indian Government Plans Sale of 10-percent Coal India Stake

Reuters reported that the Indian government plans to sell a 10-percent stake in Coal India Ltd. (BSE:533278) via a share auction that it hopes to launch by August or September. This week, it is set to invite bankers and advisers to bid to manage the offering.

As quoted in the market news:

At the current share price, the stake would be worth $3.6 billion, although the shares are likely to be offered at some discount to the market price. The government owns 90 percent of Coal India, the world’s largest coal miner by output.

The sale is crucial to New Delhi’s efforts to raise 400 billion rupees this fiscal year through sales of stakes in state companies to cut its fiscal deficit.

Click here to read the full Reuters report.