With an aim to woo foreign investor for further 5 percent stake sale in Coal India Limited, the Department of Disinvestment is likely to embark on eight-day roadshow in London and the United States.
Zee Media Bureau
New Delhi: With an aim to woo foreign investor for further 5 percent stake sale in Coal India Limited, the Department of Disinvestment is likely to embark on eight-day roadshow in London and the United States.
The government, which currently holds 90 percent stake in the company, had earlier plan to disinvest 10 percent. However, this was met with much opposition from the employees of the company who decided to go on a strike from September 23.
However, this strike has been deferred to December.
This also means that the government’s proposal to disinvest the 5 percent stake in Coal India Limited comes amidst heavy protest from the employees.
Speaking about the roadshow, an official informed, "The eight-day roadshow in places like London and some of the cities of the US, to attract foreign investors in CIL will begin from Monday."
However, he added: "This is a non-deal roadshow. The entire purpose of this roadshow is to tell the investors about CIL as a company and the kind of reserves it has."
The proposal now is to divest 5 percent stake through offer for sale (OFS) route.
CIL was listed on bourses in 2010 after the government raised Rs 15,199 crore by selling 10 percent stake in the country's biggest initial public offering.
The company has a cash balance of about about Rs 62,000 crore. The government plans to garner Rs 40,000 crore this fiscal by way of disinvestment, of which CIL's stake sale would be the largest.