Coal India falls below IPO price on stake sale buzz

Moneycontrol Bureau

Coal India (CIL) fell below the IPO price of Rs 245 apiece on stake sale plan. The stock lost 4.6 percent intraday to touch an all-time low of Rs 238.35 Friday as CNBC-TV18 reports quoting sources that the government of India has selected seven merchant bankers for divestment in the company.
These seven bankers are Goldman Sachs, Credit Suisse, Deutsche Bank, SBI Capital Markets, Kotak Mahindra Capital, JM Financial and Bank of America Merrill Lynch.
The government is likely to sell a 5 percent stake in country's largest coal mining company which is likely to fetch around Rs 8,000 crore.
The government, which had raised more than Rs 15,000 crore via CIL's IPO in 2010, holds 90 percent stake in the company as of June 2013.
At 11:35 hours IST, the stock Coal India was quoting at Rs 245.50, down Rs 4.45, or 1.78 percent.