In view of volatile market conditions, reportedly the government may split the proposed 10% stake sale of Coal India into Offer for sale (OFS) and buyback for raising Rs 17,000 crore. Coal India being a cash rich company can participate in the buyback to help the government, which is not confident of raising Rs 17,000 crore via just OFS route.
The government currently holds 90% stake in Coal India (CIL). At the current price, a sale of 56.84 crore shares, or 10 per cent of government holding, would fetch the exchequer a sum of around Rs 17,000 crore.
CIL will be the biggest disinvestment for the government in the 2013-14 fiscal. The government plans to raise Rs 40,000 crore by way of PSU stake sale this fiscal.
