New Delhi: The cabinet on Tuesday approved stake sales in state-run miners Coal India and Hindustan Copper that between them could be worth up to $ 3.7 billion.
The government will sell a 10 per cent stake in Coal India, the world's largest coal miner, through an initial public offering, Home Minister P Chidambaram told a news conference after the cabinet meeting.
The Coal India offering is expected to raise roughly $ 2.7 billion, in what could be India's largest share sale ever.
Separately, the government will sell 20 per cent in Hindustan Copper -- 10 per cent through fresh equity and another 10 per cent by divesting the government's stake, Chidambaram said, adding the offering details will be finalised by a ministerial panel.
Shares in Hindustan Copper rose more than 14 per cent, after the cabinet approved the share sale.
Hindustan Copper is expecting the government to approve its plan for a 20 per cent stake sale to raise up to about 50 billion rupees ($ 1.06 billion), its chairman Shakeel Ahmed had told Reuters earlier this month.
Coal India had been looking to launch its offering by August, although a government official recently told Reuters that a September listing was planned.
The stake sales in Coal India and Hindustan Copper are part of a government plan to offload minority holdings in 60 state firms in coming years.
The government aims to generate 400 billion rupees ($ 8.5 billion) via stake sales in state firms in this fiscal year, although persistently weak markets could make that a difficult target.
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