Home News coal india stake sale: Govt mulls selling 5%-10% stake in Coal India, Hindustan Zinc, Rashtriya Chemicals

coal india stake sale: Govt mulls selling 5%-10% stake in Coal India, Hindustan Zinc, Rashtriya Chemicals

by WOOWinvest
0 comment
coal india stake sale: Govt mulls selling 5%-10% stake in Coal India, Hindustan Zinc, Rashtriya Chemicals


India plans to sell small stakes in state-run firms including the world’s biggest coal miner and Asia’s largest zinc producer, to ride a stock market boom and boost revenue in the final quarter of the financial year, according to people familiar with the matter.

The government is looking to sell 5%-10% in Coal India Ltd., Hindustan Zinc Ltd., Rashtriya Chemicals and Fertilizers Ltd. via the so-called offer-for-sale mechanism, the people said, asking not to be identified as the details aren’t yet public. In all, five firms could be chosen, including a listed entity under the railway ministry, they added.

At current prices, sales at the lower end of the range could fetch the government some Rs 16,500 crore ($2 billion), according to Bloomberg calculations. Local stocks are at a record high, supported by a healthy pace of economic growth, and the cash raised will help Prime Minister Narendra Modi’s administration fund its subsidy bill that has surged partly because of the war in Ukraine.

Bloomberg

India had budgeted Rs 65,000 crore from such asset sales in the year through March, but has so far raised just over a third of the target, mainly from the $2.7 billion initial public offering of Life Insurance Corp. in May. Roadshows have started to gauge investor interest in the stake sales, the people said. A spokesperson for the Finance Ministry could not be reached for comment.

Coal India jumped about 46% in the past year, while Rashtriya Chemicals gained 58%, outstripping the benchmark S&P BSE Sensex’s roughly 6% advance.

You may also like

Leave a Comment

Our Mission is to help you make better trading decisions by providing actionable investing content, comprehensive tools, educational resources and assist you in making more money in the stock market.

Latest News

Newsletter

Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

@2022 – All Right Reserved. Designed and Developed by WOOW Invest

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy