Coal India dips over 15% in six days on government stake sale plan report

Shares of Coal India have dipped 7% to Rs 366, extending their over 10% decline in the past one week on the BSE, on government stake sale plan reports.

The stock has fallen 17.4% in the past six trading sessions, from Rs 443 on August 4, 2015, compared to a 1.7% decline in the S&P BSE Sensex.

“The Cabinet may consider 5-10% stake sale in Coal India on Wednesday that could fetch up to Rs 24,800 crore to the exchequer,” a PTI report suggests.

The Coal India stake sale proposal may be placed before the Cabinet, headed by Prime Minister Narendra Modi, the report added, quoting sources.

The government currently holds 79.65% stake in Coal India.

Earlier, in January 2015, the government had sold 631.64 million equity shares or 10% stake in the bluechip coal major at an average price of Rs 357 per share and this had garnered Rs 22,557 crore to the exchequer.

Meanwhile, the board of directors of the company is scheduled to meet today to consider, approve and take on record unaudited financial results of the company for the first quarter ended June 30, 2015 (Q1).

At 14:11 PM, the stock was down 6.7% at Rs 367 on the BSE. A combined 1.16 million shares changed hands on the counter on the BSE and NSE.