Coal India Ltd.

In an effort to raise Rs 40,000 crore this year via sales of stakes in state companies to cut its ballooning fiscal deficit, the government has firmed up plans to sell a 10% stake in Coal India via a share auction. The company will soon invite bids from bankers and advisers for managing the issue. Meanwhile, the stake which would be at the current price will raise $3.6 billion, is expected to be launched by August or September. Nevertheless, the shares are likely to be offered at some discount to the current market price.

Meanwhile, the government’s divestment plans for this fiscal include stakes in top state refiner Indian Oil Corporation (IOC), power equipment maker Bharat Heavy Electricals and a follow-on public offer in Engineers India.

Coal India, the world’s largest coal miner by output has reported production of 35.75 million tonnes in April 2013 as against target of 35.15 million tonnes. Meanwhile, the company’s total off-take for the month of April stood at 39.89 million tonnes as against a target of 40.03 million tonnes.