Exit Coal India says SP Tulsian

SP Tulsian of sptulsian.com told CNBC-TV18, "If one really takes 10 percent divestment that can give Rs 20,000 crore to the government against their target of Rs 23,000 crore which they have set in the Budget. Obviously, that 10 percent offer for sale (OFS) will not come in one tranche. The government has to think of at least two or may be three tranches where it will get divested or OFS will happen which will take about 5-6 months time. However, once the process progresses towards that, the share price will definitely fall below Rs 300. In fact, this is seen quite negative for the stock price."

"Post the numbers having reported by the company we have seen marginal increase in the commodity prices by the company which has given them an effective gain of 2-2.5 percent. They have reduced on the higher quality and increased the lower quality. My advice is that yes, those who are holding should look to exit from Coal India and any progress in this direction will make the share to fall below Rs 300," SP Tulsian said.