Shares of Coal India Ltd slipped to 3 months lows

Coal India Ltd., the world's largest producer of the commodity, sunk to lowest level in about 3 months on news reports that the government may sell a minority stake to fund its fiscal deficit. The stock dropped for the 6th straight day, after hitting a record high on August 5th.

The Government, which controls 80 percent stake in Coal India, has moved a consultation paper to seek the Cabinet's permission to divest nearly 10 percent stake to raise about 45,000 crore rupees in a bid to meet its expenses. Coal India enjoys a market capitalisation of 2.48 lakh crore rupees.

As a consequence, Coal India dropped 29 rupees, or 7.4 percent, to 364 rupees, its lowest since May 21st on the National Stock Exchange. Nearly 1.17 crore shares of Coal India were traded, valued at 442 crore rupees on the NSE.

Image credit: Indiatimes