The Indian government on Thursday set the floor price for its sale of an up to 10 percent stake in Coal India Ltd, set to be the biggest equity offering in the local market, at a 4.5 percent discount to the stock’s closing price.
The government, which owns a 90 percent stake in Coal India, will raise up to $3.7 billion from the sale at the floor price.
The floor price for the share auction on Friday was set at 358 rupees per share, according to a notification to the stock exchanges. The stock closed down 2.3 percent on Thursday at 374.95 rupees.
The government plans to sell 315.8 million shares in Coal India with an option to sell another 315.8 million in the auction, as part of its target to raise about $10 billion in asset sales during the current fiscal year to end-March.