India considers selling small stakes in its mammoth coal, zinc miners

India plans to sell small stakes in state-owned companies, including the world's largest miner and Asia's largest zinc producer, to experience a stock market boom and boost sales in the last quarter of the fiscal year, according to people familiar with the case.

The government wants to sell 5%-10% in Coal India Ltd., Hindustan Zinc Ltd., Rashtriya Chemicals and Fertilizers Ltd. the details are not yet public. A total of five companies could be chosen, including a listed entity under the Ministry of Railways, they added.

According to Bloomberg calculations, sales at the lower end of the range could net the government some 165 billion rupees ($2 billion) at current prices. Local stocks are at an all-time high, supported by a healthy pace of economic growth, and the money raised will help Prime Minister Narendra Modi's government fund its subsidy bill, which has risen in part due to the war in Ukraine.

Roadshows have started to gauge investor interest in the stake sales, the people said. A spokesperson for the Finance Ministry couldn't be reached for comment.

Coal India jumped about 46% in the past year, while Rashtriya Chemicals gained 58%, outstripping the benchmark S&P BSE Sensex's roughly 6% advance.