CIL stake sale: DoD holds 5-nation roadshow to woo investors
Oct 23 2013 , New Delhi
Sources said the roadshows are being held in New York, Boston and San Fransisco in the US, followed by Toronto in Canada and London in the UK.
It would also have the officials meet investors in the city of Frankfurt (Germany) and Amsterdam (Netherlands).
The roadshows would have the DoD officials and CMD and Director (Finance) of Coal India woo foreign investors for the 5 per cent government stake sale in company which could fetch Rs 9,129 crore to the exchequer at the current market price.
Proceeds from CIL disinvestment would be the largest in the current fiscal.
Government currently hold 90 per cent stake in CIL.
It has already selected seven merchant bankers, including Goldman Sachs, Credit Suisse and SBI Caps, to manage the CIL stake sale which will take place through the offer for sale route.
Shares of CIL closed at Rs 289.05, down 1.33 per cent over previous close on the BSE.
The Disinvestment department was originally planning to offload 10 per cent stake in CIL, but faced strong opposition from employees union as they threatened to go on strike.
CIL workers' union had in September decided to defer its proposed three-day strike to December 17. Earlier, it was planned from September 23.
CIL got listed on the bourses in 2010 through an initial public offering in which the government raised Rs 15,199 crore by selling 10 per cent stake.
The company has a cash balance of about Rs 60,000 crore.
The government plans to garner Rs 40,000 crore this fiscal by way of disinvestment and CIL's stake sale would be the largest.
So far, the government has raised over Rs 1,300 crore through PSU stake sale.