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Trade unions worried about Centre's plan to take its Coal India stake below 75 pct


Devdiscourse News Desk Kolkata
Updated: 30-10-2018 21:26 IST
Trade unions worried about Centre's plan to take its Coal India stake below 75 pct

(Image Credit: Twitter)

The trade unions have opposed the stake sale by the Centre in Coal India to any extent beyond the regulatory requirement of 25 per cent of floating stock for listing.

The government will sell up to 3 per cent stake (18.62 crore shares) in Coal India on October 31 and November 1 via Offer for Sale (OFS) route at a floor price of Rs 266 per share.

But, in the case of oversubscription, an option of selling an additional 37.24 crore (nearly six per cent stake) is there. This may pull down the government's holding in Coal India below 75 per cent.

"We oppose divestment in principle. But, it must be up to 25 per cent which is the requirement of SEBI for listing. Anything beyond this is not accepted and we condemn this act," INTUC-backed Coal sector union leader SQ Zama said. The government holds 78.32 per cent stake in Coal India.

LIC is the biggest public shareholder with 8.97 per cent stake in the state mining major. CITY-backed All India Coal Workers Federation secretary D D Ramanandan said it condemns the act and all the trade unions will discuss the matter.

"We have already called an all India strike in January but we will discuss such actions and decide the next course of action," he said.

(With inputs from agencies.)

COUNTRY : India