The country's largest coal miner Coal India is likely to appoint a merchant banker soon to advise it on the proposed disinvestment in the company.

A top coal ministry official said that "CIL may appoint a merchant banker soon to advise it on the proposed disinvestment.”

The coal major had recently held meetings with two such bankers who made their presentations. The official however clarified that it should not be confused with an investment banker, which will be appointed after the disinvestment process in the company starts.

He added that "The investment banker to oversee the stake sale process will be appointed by the Department of Disinvestment after the share sale in the company gets Cabinet nod.”

Another coal ministry official said that "We are in discussions with the Department of Disinvestment for fine tuning the proposal. The last meeting in this regard was held on October 16.”

Asked if the quantum of proposed disinvestment has been ascertained, the official said that "That will be discussed towards the end. As of now, we are working to comply with certain regulatory formalities which are necessary prior to the disinvestment."

As per report the government may offload a maximum of 10% of its stake in the state run firm. Currently its holdings in CIL stand at 100%.

(Sourced from Business Standards)