Coal India gains further; Goldman Sachs says buy
"Media reports indicate that the government might look at the option of a share buyback or special dividend to raise cash from Coal India. We believe risk-reward is compelling at the current stock price," Goldman Sachs report said.
September 04, 2013 / 13:05 IST
Moneycontrol Bureau
Coal India extended its gains on Wednesday on reports of buyback of equity shares. Goldman Sachs has a buy rating on the stock with a target price of Rs 375."Media reports indicate that the government might look at the option of a share buyback or special dividend to raise cash from Coal India. We believe risk-reward is compelling at the current stock price," Goldman Sachs report said.Meanwhile, Cabinet will consider Coal India issue in two weeks, finance ministry sources say on Tuesday.It is learnt that finance ministry wrote to coal ministry for buyback issue of Coal India (CIL). According to them, CIL will give special dividend if buyback does not get cleared.Last week, the government, which holds 90 percent stake, has picked seven investment bankers for divestment of further 5 percent stake in Coal India. Seven bankers are Goldman Sachs, Credit Suisse, Deutsche Bank, SBI Capital Markets, Kotak Mahindra Capital, JM Financial and Bank of America Merrill Lynch.At 10:09 hours IST, the stock was up 0.56 percent at Rs 262.65 on the Bombay Stock Exchange. It rallied 5 percent in four consecutive sessions. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
