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Divestment of CIL may Benefit the Shareholders in Longer Run

News

Government has again extended the date by another three weeks for submission of bids by merchant bankers interested in managing the Coal India's (CIL) 10 per cent stake sale, which may fetch around Rs 19,600 crore. 
Source: ET

SNP Insight

Extension of bids by 3 weeks may make shares more volatile of CIL because of varying sentiments of the investors. However, share of CIL is likely to fall at start holding it for quite sometime with upward move as 10% stake would be divested and the raised money may be utilized to increase the overall networth, benefitting the shareholders of the company in a longer run.
Source: SNP Infra Research