Companies & Sectors
Cabinet nod to disinvest 10 percent stake in Coal India
The union cabinet on Wednesday approved a further divestment of 10 percent government stake in Coal India Ltd. (CIL).
 
"The disinvestment of 10 percent stake in Coal India Ltd. was one of the major cabinet decisions today (Wednesday)," Coal and Power Minister Piyush Goyal told reporters here after the meeting.
 
"The terms and time of the divestment will be decided by the finance ministry and the department of disinvestment," he added.
 
The government hopes to raise around Rs.23,000 crore to Rs.24,000 crore through this stake sale.
 
"The government of India intends to disinvest 10 percent paid-up equity capital (63,16,36,440 shares with a face value of Rs.10 each) of CIL out of its shareholding of 78.65 percent through the offer for sale of shares by the promoters through stock exchanges method as per the Securities and Exchange Board of India rules and regulations," a notice from the department of disinvestment said earlier this year.
 
The Centre has sought bids from merchant banks and selling brokers to take the process forward. It will select five such banks or brokers to manage the issue.
 
The government is also considering allotment of shares to eligible and willing employees of CIL at a discount of up to five percent to the issue, up to a maximum of five percent of the size of the offer for sale.
 
As per the proposal from the disinvestment department, the authorised capital of CIL stands at Rs.8,904.18 crore, which comprises of a Rs.904.18 crore non-cumulative 10 percent redeemable preference shares and Rs.8,000 crore equity shares. The subscribed equity capital as of March 31, 2014, stands at Rs.6,316.36 crore.
 
In January-end, the government sold a 10 percent stake in CIL, which fetched Rs.22,557 crore.
 
A majority of CIL workers went on a one-day general strike in early September to protest the Centre's disinvestment move in the company.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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COMMENTS

Rajendra mandhania

1 year ago

This piecemeal disinvestment reminds of decadent kings,zamindars of British and post independence era when they sold family silver to meet daily expenses or to indulge.

Patanjali says its noodles followed food safety norms
 Baba Ramdev-promoted Patanjali on Wednesday said it has followed all the guidelines and regulations of the Food Safety and Regulatory Authority of India (FSSAI) in the launch of its "atta" instant noodles and other products.
 
"We have followed all rules and guidelines by the FSSAI. We have not disobeyed any of them," said S.K. Tijarawala, spokesperson for Patanjali.
 
"The FSSAI has given us the licence of re-labelling under pasta category and on basis of which we have given contract to various companies to make noodles (for us)," he said in the statement.
 
The remarks come in the wake of a top FSSAI official claiming that Patanjali's instant noodles was launched without its product approval. The authority's chairman Ashish Bahuguna has also been quoted as saying that product approval for pasta cannot apply to noodles.
 
The chairman, however, was not available for comment. Following persistent calls, his office told an IANS correspondent that the chairman "cannot respond to individual queries" and that he had said what he wanted to.
 
The authority did not issue a statement either. But a set of questions was nevertheless forwarded over e-mail to the chairman's office on the subject.
 
Tijarawala said Patanjali had taken a product licence for pasta under the "central category" and that noodles, accordingly, fell under that.
 
Forwarding some documents to IANS purportedly from the food safety authority Tijarawala alluded that by virtue of Licence Number 10014012000266, renewed on October 15 this year and valid till February 21, 2019, a "modified licence" was also issued.
 
He said the pasta sold by Patanjali has already secured the modified licence; this also gave it the right to manufacture noodles as it was only a variant.
 
Patanjali had formally launched its wholewheat instant noodles on Monday.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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CCEA approves Cochin Shipyard's Rs.33,984 crore IPO
The Cabinet Committee on Economic Affairs (CCEA) at its meeting chaired by Prime Minister Narendra Modi on Wednesday approved Rs.33,984 crore initial public offer (IPO) by Cochin Shipyard Ltd. (CSL).
 
The CCEA's approval is for issue of 3,39,84,000 shares of Rs.10 each, out of which fresh issue would be 2,26,56,000 shares and sale of the central government's holding in the company to the tune of 1,13,28,000 shares, a CCEA statement said.
 
The proceeds of the fresh share issue will be used to part-finance the following areas for expansion in short and medium term: (I) Setting up of an international ship-repair facility (ISRF) at Cochin Port Trust area; and (II) Setting up of a large dry dock within the CSL premises to take up construction of larger ships such as large sized aircraft- and crude carriers.
 
The money will also be used to take up underwater repairs to rigs and semi submersibles.
 
The disinvestment of the central government's stake in CSL is in line with the government's decision on the issue. It will raise resources for the government due to the sound financial condition of CSL, the statement added.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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