Coal India falls as Cabinet likely to consider divestment proposal

NEW DELHI: Shares of Coal India fell 7.68 per cent in intraday trade on Wednesday on reports that the Cabinet may consider stake sale in the company today.

The stock ended the day in red, down 5.53 per cent or Rs 21.75 at Rs 371.45.

The government plans to sell 5-10% stake in the miner.

The government currently holds 79.65 per cent stake in Coal India (CIL).

However, Coal Secretary Anil Swarup told ET Now that they have not given a thought yet to Coal India's divestment and the government will decide on it.

Sources said the CIL stake sale proposal may be placed before the Cabinet, headed by Prime Minister Narendra Modi.

At the current price, a 10 per cent stake sale could fetch about Rs 24,800 crore.

The government had last sold 10 per cent stake in the bluechip coal major on January 31, 2015. It had then garnered Rs 22,557 crore.

The disinvestment department is readying PSUs for disinvestment and is seeking Cabinet approval for the same. It has Cabinet nod for about two dozen PSUs and is waiting for right market conditions to go ahead with the stake sale.

So far this fiscal year, due to volatile markets, the government has sold stake in only two PSUs -- REC and PFC -- and garnered over Rs 3,000 crore.

The government has set a target of Rs 69,500 crore to be garnered through PSU stake sale.

Coal India will report its results for the quarter ended June 30 later today.