CIL, ONGC disinvestment likely to be in 2 tranches to get fair value of equity

NEW DELHI: Government is planning to offload a part of its stake in Coal India and ONGC in two tranches to get a fair value of the equity, official sources said.

Dates for sale of its stake in Coal India and ONGC will be decided after studying the market conditions, they added.

The Cabinet has approved 5 per cent stake sale in ONGC, which could fetch an estimated Rs 11,477 crore to the exchequer. A 10 per cent divestment in Coal India could garner an estimated Rs 15,740 crore.

"Government may decide to split the share sale of Coal India and ONGC in tranches as prices are under valued," official sources said.

As regards the date for stake sale, they said it will be decided after taking into consideration market conditions.

"There are still lots of ifs and buts in ONGC and Coal India stake sale," the source said.

Shares of ONGC today closed at Rs 385.80, up 1.34 per cent. Coal India shares closed at Rs 347.80, up 0.12 per cent over previous close on the BSE. The government proposes to raise Rs 43,425 crore through stake sale in PSUs in the current fiscal

Besides Coal India and ONGC, the government also plans to offload 11.36 per cent stake in NHPC, which could fetch Rs 1,976 crore. Government holds 68.94 per cent in ONGC, 89.65 per cent in Coal India and 85.96 per cent in NHPC.