Coal India OFS Sees Robust Demand, Oversubscription Rate Exceeds 800% on First Day

Coal India OFS Draws Eight Times the Shares on Offer

New Delhi: Investors have shown confidence in the government's stake sale in Coal India Ltd, with the offer-for-sale (OFS) attracting bids worth more than eight times the shares on offer on the first day. The issue was subscribed 8.14 times on Wednesday, as per the department of investment and public asset management (Dipam) secretary Arunish Chawla.

The government has decided to exercise the entire green shoe option, as announced by Chawla on social media platform X. Retail investors and employees will be able to bid on Friday. The OFS is part of the government's broader disinvestment and public shareholding strategy aimed at improving market liquidity and raising non-tax revenue through stake sales in listed public sector enterprises.

The government aims to collect up to ₹5,000 crore by selling its shares in Coal India. The floor price for the OFS has been set at ₹412 per share. According to data available on the Dipam website, the government currently holds 3.89 billion shares in Coal India, representing a 63.13% stake in the company.

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Based on Wednesday's closing price of ₹463.60 per share, the government's holding is valued at around ₹1.80 trillion, while Coal India's total market capitalisation stands at about ₹2.85 trillion. The strong response also reflects investor confidence in Coal India's diversification plans into renewable energy and critical minerals, according to former coal secretary Amrit Lal Meena.

Coal India remains a key revenue-generating company for the government through dividends and taxes. The company accounts for over 80% of domestic coal production and continues to play a critical role in ensuring fuel supply to thermal power plants, which still contribute the bulk of India's electricity generation.