Coal India Ltd.

The Government of India has selected seven merchant bankers including Goldman Sachs, Credit Suisse, Deutsche Bank and SBI Capital Markets to manage its disinvestment of 5% stake in Coal India (CIL). Kotak Mahindra Capital, JM Financial and Merrill Lynch are the other bankers chosen. As many as 18 merchant bankers had made presentations to the Disinvestment Department.

The government currently holds a 90% stake in the company and the 5% stake sale would fetch it over Rs 7,893 crore at the current market price. The government intends to disinvest over 31.58 crore shares through an Offer for Sale through the stock exchanges.

CIL employees will be allotted shares at a 5% discount to the lowest cut-off price. A maximum of 10% of the offer will be kept for employees. The Disinvestment Department pared a plan to sell a 10% stake in CIL to placate employee unions, which have threatened to go on strike.