Coal India Offers up to 2% Stake at Discounts in Upcoming OFS

Government Announces Sale of Stake in Coal India Ltd

On May 26, the central government announced a sale of up to 2% stake in Coal India Ltd, a move that is expected to attract significant investor interest.

According to a post on X by the Department of Investment and Public Asset Management (DIPAM) Secretary, the government has announced an offer for sale (OFS) in CIL with a base offer of 1% of its equity and an additional 1% green shoe option in case of oversubscription. The floor price for the sale has been fixed at Rs 412 per share, which is 10% lower than the current market rate of Rs 455.90 as of May 26.

The sale will be conducted in two phases, with non-retail investors able to participate from May 27 and retail investors from May 29. The government has proposed to sell 6.16 crore equity shares, representing 1% of Coal India's total paid-up equity capital, as the base offer size.

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The sale also includes an option to offer up to 25,000 equity shares to eligible employees of the company, subject to approval from the competent authority. Eligible employees may apply for equity shares amounting up to Rs 500,000. Coal India has informed the Ministry of Coal that it continues to offer a compelling long-term investment opportunity with its strong operational and financial performance, consistent returns, and attractive dividends.