Coal India may meet 35% public holding target by fiscal end

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Published: February 14, 2020 2:05:25 AM

rior to this, in October 2019, the government sold 0.21% of its holding in CIL and raised Rs 230 crore through Bharat ETF scheme. This was preceded by raising Rs 2,247 crore by offloading a 1.7% stake through the CPSE ETF scheme.

In October 2019, the government sold 0.21% of its holding in CIL

Thanks to its public issues and stake sales through the ETF route, Coal India (CIL) is poised to meet its target of 35% public holding after imminent sale of an another 1.14% stake from the present government holding of 66.14%. A CIL official said the company will shortly make another tranche of offer to reach the proposed 35% public holding level for listed companies. Since April last year, the Centre has offloaded 4.82% stake in the company and has raised around Rs 5,700 crore. The last tranche of the offer was made last week through a CPSE exchange-traded fund, wherein the Centre sold 179.57 million shares and raised around Rs 3,300 crore. The shares were priced at Rs 177.9 per share, the official said.

Prior to this, in October 2019, the government sold 0.21% of its holding in CIL and raised Rs 230 crore through Bharat ETF scheme. This was preceded by raising Rs 2,247 crore by offloading a 1.7% stake through the CPSE ETF scheme.
In the July 2019 FY20 Budget, the Centre proposed to raise the public holding level for listed companies from 25% to 35%, saying that higher float would curb market manipulation and promote equity culture. The Sebi is to make the necessary rules.

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