Mumbai: Shares of Coal India Ltd ended over 2 percent lower Thursday, wiping-out Rs 5,620.59 crore from its market valuation, as the government decided to sell up to 10 per cent stake in the company to raise about Rs 24,000 crore tomorrow.
After falling 5 percent to Rs 364.60 in intra-day trade at the BSE, shares of CIL finally ended at Rs 375.15, down 2.32 percent from its previous close.
At the NSE, it settled with a loss of 1.43 percent at Rs 378.30 per share.
Tracking weakness in the stock, the company's market valuation tanked Rs 5,620.59 crore to Rs 2,36,958.41 crore.
On the volume front, 23.16 lakh shares of the company changed hands at the BSE and over one crore shares were traded at the NSE during the day.
"Coal India lost post the government's announcement of divestment of a stake in the company," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio Ltd.
In the country's biggest share sale ever, the government will sell up to 10 percent stake in Coal India Ltd to raise about Rs 24,000 crore on Friday.
The government will sell 31.58 crore shares, or five per cent stake, in a public offer, with an option to sell another 5 per cent, Coal India had said in a regulatory filing yesterday.
The disinvestment is expected to help government meet half of its Rs 43,425 crore revenue target from stake sale in public sector companies.
At yesterday's closing price of Rs 384.05, a 10 percent stake sale will enable the world's largest coal producer to raise Rs 24,257 crore.