The 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).
The disinvestment transaction will be an Offer for Sale (OFS) of shares by the Promoters through the Stock Exchange Mechanism method as per the Securities and Exchange Board of India (SEBI) Rules and Regulations.