Web Exclusive | August 2013
Govt entrusts CIL stake sale task to seven banks
To take up the assignment of sale of five per cent stake in Coal India, the Union government has selected seven major banks. They are: Goldman Sachs, Bank of America Merrill Lynch, Deutsche Bank, Credit Suisse and Indian investment banks-SBI Capital, JM Financial and Kotak Mahindra Capital. The government wants to raise $1.2 billion through the stake sale in CIL.
To plug the the yawning current account deficit (CAD) the Union government has planned a programme of divestment to raise Rs 400 billion ($5.87 billion) in this fiscal ending next March. India, which is also battling growing fiscal pressures and a slowing economy, may launch the sale in October. The government has already raised $3.4 billion through an initial public offering of 10 per cent of Coal India in 2010. If the latest proposed sale goes through, its stake will fall to 85 per cent.