Money News

Government to sell 3 percent stake in Coal India

A labourer works inside a coal yard on the outskirts of Ahmedabad, India, April 6, 2017. REUTERS/Amit Dave/File Photo

(Reuters) - The Indian government will divest a 3-percent stake in Coal India Ltd by selling up to 186.2 million shares in the miner, the state-owned company said on Tuesday.

The government has a target to raise a record 1 trillion rupees ($13.57 billion) from the sale of state assets in the current fiscal year ending March 2019.

The shares will be sold at a floor price of 266 rupees apiece, and the sale will be conducted on Wednesday and Thursday, the company said in a filing.

The government of India owns 78.3 percent in the coal miner, according to data on the Bombay Stock Exchange.

The offer may be extended to include an additional 372.4 million shares in the company, Coal India said.

Shares in Coal India closed 4 percent weaker at 275.85 rupees on the National Stock Exchange on Tuesday.

($1 = 73.6750 Indian rupees)

Reporting by Krishna V Kurup in Bengaluru, Editing by Sherry Jacob-Phillips