Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has approved the disinvestment of 10 percent paid up equity capital of Coal India Limited. This implies divesting of 63,16,36,440 shares of Face Value of Rs. 10 each out of the Government of India shareholding of 78.65 percent (after adjusting one percent equity to be offered for sale to the employees of CIL as per 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 Rs.6,316 crore. After the disinvestment of 10 percent equity, the GoI’s shareholding in CIL would come down to 68.65 percent (with slight variation based on outcome of sale of onepercent equity shares to employees of CIL).
About Coal India Ltd:
- Coal India Limited (CIL) is an Indian state-controlled coal mining company headquartered in Kolkata, West Bengal. It is the largest coal producer company in the world.
- Coal India contributes around 82% of the coal production in India.
- Government of India currently has 79.65% equity shareholding in the company while foreign institutional investors have 9.04 percent stake and domestic institutional investors 8.44 percent stake as of September 2015.
- The government had sold 10 percent stake in Coal India for more than Rs 25,000 crore through offer for sale in January 2015 and another 10 percent for Rs 15,000 crore through IPO in 2010.
- The Proposed 10% divestment in Coal India will bring down government holding below 70%.
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