Coal India Ltd was one of the trending stocks on the stock exchanges today due to the notice from the Indian government, which caused shares to come under heavy selling pressure and tumble more than 4%.
According to a notice released on Wednesday, the Indian government will be selling up to 3% of its stake in the state-owned miner Coal India Ltd. Through the Offer for Sale (OFS), the government will sell 9.24 crore shares or roughly 1.5% stake, and in the event of oversubscription, an extra 1.5% stake will be up for sale. The offer will be open for subscription for non-retail investors on Thursday while retail investors can subscribe on Friday.
Taking into account the company’s quarterly performance, on a consolidated basis, it reported a notable growth of 16.64% from Rs 32,708.69 crore registered in Q4FY22, recording total revenue of Rs 38,152.34 crore in Q4FY23. The net profit for the fourth quarter of FY23 to the same quarter last year declined 17.33% from Rs 6,692.94 crore to Rs 5,533.23 crore.
In its meeting, the board of directors recommended paying a final dividend of Rs 4 per share with a face value of Rs 10 each for the financial year 2022-23. Shares of the company had a modest rally in May.
The state-owned coal mining company, Coal India Limited, was established in November 1975. It is a Maharatna company, a privileged status granted by the Indian government to a select few state-owned enterprises to enable them to grow and become global majors. The single largest coal producer in the world and one of the major corporate employers today, it operates through its subsidiaries in 84 mining areas spread throughout eight states of India.
Keep a close eye on this stock for the upcoming sessions!