Govt Planning To Sell Small Stakes Of Coal India, Hindustan Zinc: Report

A total of five firms could be listed. With Coal India Ltd., Hindustan Zinc Ltd., Rashtriya Chemicals and Fertilizers Ltd., a listed entity under the railway ministry could also be chosen

By : ABP News Bureau | Updated at : 25 Nov 2022 05:37 PM (IST)

Govt Planning To Sell Small Stakes Of Coal India, Hindustan Zinc Report Govt Planning To Sell Small Stakes Of Coal India, Hindustan Zinc: Report

In the past year, Coal India’s shares have gained about 46 per cent and Rashtriya Chemicals' shares gained 58 per cent.

Source : Getty

The central government is planning to sell small stakes in PSUs, including Coal India Ltd., Hindustan Zinc Ltd., Rashtriya Chemicals, and Fertilizers Ltd, to boost revenue in the final quarter of this financial year, reported Bloomberg. The report citing sources privy to the matter said that the government plans to profit from the stock market boom.

A total of five firms could be listed. With Coal India Ltd., Hindustan Zinc Ltd., Rashtriya Chemicals and Fertilizers Ltd., a listed entity under the railway ministry could also be chosen. Center is looking to sell 5 per cent-10 per cent of shares via the so-called offer-for-sale mechanism, the report said. Though the details are not in the public domain yet.

According to Bloomberg calculations, even at the lower end of the range, the sale could bring in around Rs 165 billion ($2 billion) for the government. With a healthy pace of economic growth, local shares are currently at a record high. This sale can help the government fund its subsidy bill which has surged partly because of the war in Ukraine.

Also Read: Coal India's Capital Expenditure Jumps 33 Per Cent To Rs 7,027 Crore In April-September Period

In May, the government raised $2.7 billion from the initial public offering (IPO) of Life Insurance Corporation (LIC). Though it had estimated to earn Rs 650 billion from stakes sales of PSUs this financial year. The report said that the roadshows have started to gauge investor interest in stake sales.

In the past year, Coal India’s shares have gained about 46 per cent and Rashtriya Chemicals' shares gained 58 per cent. Coal India Ltd is the world’s biggest coal miner and Hindustan Zinc Ltd is asia’s largest zinc producer. In July this year, the Centre reportedly called bids from merchant bankers to assist the government in selling its 29.5 per cent residual stake in Hindustan Zinc.