10 percent disinvestment approved in Coal India and Hindustan Copper

New Delhi, June 15 (ANI): The Cabinet Committee on Economic Affairs (CCEA) on Monday approved the disinvestment of 10 per cent equity each in mining companies Coal India Ltd and Hindustan Copper Ltd.

Talking to reporters after the meeting, Home Minister P Chidambaram said: "The disinvestment of Coal India Ltd (CIL) would be through book building process in the domestic market. One per cent of the equity will be offered to the employees of Coal India Ltd and its eight subsidiaries."

"The committee also decided to allow five per cent price concession to retail investors and employees of CIL. The paid up equity capital of CIL is Rs 6,316.36 crore and the government owns 100 per cent stake in the coal major," he added.

The CIL, a Central Public Sector Enterprise, is a Navratna Company engaged in production and marketing of coal and coal products. At present, the paid up equity capital of the company is Rs.6316.36 crore and the Government of India holds 100 percent of the equity.

For the disinvestment of Hindustan Copper Ltd, there will be a fresh issue of equity to the extent of 10 per cent of the pre-issued paid up capital.

"In conjunction with the issue of the equity, government will also disinvest its 10 per cent pre-issued paid up capital of the company," Chidambaram said.

"Reservation of shares for employees of HCL will be on a discount of five percent which will also be available to retail investors as per the guidelines of SEBI," he added. (ANI)