Coal India stock closes 3.53% lower after govt announces 3% stake sale

The Coal India stock fell in early trade a day after the government announced a 3% percent stake sale in the state-run coal miner. The Coal India stock fell up to 4.3% to 263.80 level on the BSE. The stock opened at 265 level and fell to an intra day low of 263.80 compared to yesterday's close of 275.90 level.It closed 3.53% lower at 266.15 on the BSE.

The large cap stock has lost 6.81% during the last one year and risen 1.46% since the beginning of this year. The stock opened at a loss of 3.95% today. It has been losing for the last two days and has fallen 7.04% during the period.  

The Coal India stock closed at Rs 277, down 3.62 per cent on the NSE yesterday. On BSE, the stock closed 3.88% or 11.15 points lower at 275.90 level.

22 of 28 brokerages rate the stock "buy" or 'outperform', five "hold" and one "underperform" , according to analysts' recommendations tracked by Reuters.

On Tuesday, the government announced stake sale of up to 3% 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. The floor price was at discount of 4% to yesterday's closing price of Rs 277 on the NSE.

Non-retail investors would be allowed to take part in the OFS on October 31. On November 1, both retail and non-retail investors can take part in the share sale.

The government holds 78.32% stake in Coal India. LIC is the biggest public shareholder with 8.97% stake in the state-run coal behemoth.

Earlier, the government sold 10 per cent stake in Coal India through an OFS in January 2015. It had raised about Rs 23,000 crore from the sale.