* Govt aims to sell 10 pct stake next fiscal year - sources
* Indian Oil, Engineers India among divestment targets for
* Coal India shares slump 5.5 pct in Mumbai trade
(Adds details, confirmation from govt sources)
MUMBAI, March 18 Shares of Coal India,
the world's largest coal miner by output, tumbled to a more than
five-month low on Monday after government sources said the
Indian government was planning to sell a 10 percent stake in the
The government plans to sell the stake in the next fiscal
year, which starts on April 1, although it has not finalised a
time frame or method for the sale, said the sources, who
declined to be identified because they are not authorised to
speak to news media.
As of 12:30 p.m. (0700 GMT), Coal India shares were down 5.5
percent at 302.40 rupees after falling as low as 299.95 rupees,
their lowest since Oct. 5. The Economic Times, which first
reported the news, said the government was "quickly pushing
ahead" with the sale.
Coal India officials could not immediately be reached for
At the current price, a 10 percent sale in the company could
fetch the government about $3.5 billion.
The stake sale would be part of the government's efforts to
raise 400 billion Indian rupees ($7.4 billion) in 2013/14
through stake sales in state companies to cut down on the fiscal
New Delhi has raised $4.1 billion from divestments so far
this fiscal year, and could improve on that if a planned share
auction in steelmaker SAIL goes ahead this month.
For the next fiscal year, the government's divestment plans
include stake sales in top state refiner Indian Oil Corp
and a follow-on public offer in Engineers India Ltd
The Coal India sale may take place through a follow-on
public offer or a share auction, but a decision will be taken
later, said one of the sources. He said the actual offer may be
months away as several related issues need to be resolved first.
UK-based shareholder The Children's Investment Fund has
demanded the state miner raise coal prices to international
levels, and issue higher dividends. It has filed lawsuits
against the company and its directors.
Coal India is also expected to face resistance from workers'
unions if the government decides to cut its stake in the
Coal India debuted on stock markets in 2010 after a record
$3.4 billion initial public offering.
($1 = 54.05 rupees)
(Reporting by Rafael Nam and Prashant Mehra; Editing by Chris