The Government of India has launched an Offer for Sale (OFS) in state-owned Coal India Ltd to divest up to a 2% stake in the company and raise nearly ₹5,000 crore. The move is part of the Centre’s ongoing disinvestment programme aimed at mobilising resources and reducing its stake in public sector enterprises.
Under the OFS, the government will initially sell 6.16 crore equity shares, representing a 1% stake in Coal India. It has also retained a greenshoe option to sell an additional 6.16 crore shares, taking the total potential sale size to 12.32 crore shares or 2% of the company’s equity.
The floor price for the issue has been fixed at ₹412 per share. The offer price is around 10% lower than Coal India’s previous closing price of approximately ₹457 on the stock exchanges, offering investors an opportunity to purchase shares at a discount.
The OFS opened for non-retail investors on May 27, while retail investors and eligible employees can participate in the offer on May 29. Typically, OFS transactions reserve a portion of shares for retail investors, allowing broader participation in government stake sales.
The announcement led to pressure on Coal India shares during market trading, with the stock declining more than 6% as investors reacted to the discounted offer price and increased supply of shares in the market.
Prior to the stake sale, the Government of India held around 63.13% stake in Coal India. Following the completion of the transaction, the government’s holding is expected to reduce depending on the final subscription and exercise of the additional sale option.
Coal India remains one of the country’s largest public sector companies and plays a key role in India’s energy and mining sector. The latest OFS is expected to support the government’s revenue generation efforts while advancing its broader divestment strategy for the financial year.
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