The Indian Government has selected seven bankers for the coal India disinvestment program, out of the eighteen applicants. Goldman Sachs, Credit Suisse, Deutsche Bank, SBI Capital Markets, Kotak Mahindra Capitals, JM Financial and the Merrill Lynch are the seven bankers that have been selected for selling the stake holdings of Coal India. At present, the government holds 90% stake in the company. The government has planned to sell 31.58 crore shares, through the stock exchange markets. The present value of the share is Rupees 249.95 and the disinvestment program would fetch 7,893 crore Rupees.
The government is going to sell the shares to the employees of the CIL, at 5% discount and the maximum discount would be ten percent. Mr. P. Chidarmbaram, Finance Minister said that the amount would be invested in the public sector banks. He further said that the money would not be used for the current expenditure.