Since its highs a month-and-a-half ago, Coal India has been trending weak, hitting its 52-week lows recently. The current infirmity in the stock follows the government’s decision to offload 2.21 per cent stake in the company.
Earlier, the government had sold a 3 per cent stake through an offer for sale, indicating an option to offload a further 6 per cent on over subscription. Analysts said since the government had indicated a stake sale of up to 9 per cent and only 3 per cent had taken place initially, the stake sale overhang continued and would likely remain. Read More