India to sell up to US$4b of stake in largest coal miner

[NEW DELHI] The Indian government will sell as much as 10 per cent in monopoly miner Coal India Ltd in a public offer on Jan 30, the country's coal ministry said in a regulatory filing.

The federal government will sell five percent stake, or 315.8 million shares, with an option to sell another 5 per cent, the ministry said.

At Wednesday's closing price of 383.80 rupees, a 10 per cent sale in the world's largest coal producer will raise 242.4 billion rupees (US$3.95 billion). The floor price for the offer will be announced on Thursday.

The sale is part of Prime Minister Narendra Modi's plan to raise 584 billion rupees through share sales this fiscal to cut the budget deficit and fund building of roads, power transmission lines and railway tracks.

BLOOMBERG