Coal India Share Price Drops 5% as Government Launches Two-Day OFS Program

Coal India Share Price Drops 5.30% Amid Government's Stake Sale Announcement

Coal India's share price plummeted 5.30% to ₹433.95 on the National Stock Exchange (NSE) in Wednesday's trading session, following the central government's announcement of a stake sale through an offer for sale (OFS). The stock opened at ₹429 apiece today, compared to the previous close of ₹458.15 on Tuesday.

Despite the recent decline, Coal India shares have maintained a positive trend in the near-term, surging by 8.45% on a year-to-date (YTD) basis and 8.59% in the last one year. Notably, the company's shares have delivered 80% returns in three years and multibagger returns of 200% in five years.

Government to Divest Up to 2% Stake in Coal India

Read also: SpaceX Seeks Record $75 Billion IPO, Potentially Positioning Elon Musk as the World's First Trillionaire

The Government of India plans to divest up to a 2% stake in Coal India through an OFS scheduled for May 27 and May 29. According to an exchange filing by the state-run miner on Tuesday, the floor price for the OFS has been fixed at ₹412 per share, reflecting a discount of nearly 11.2% to the NSE closing price of ₹458.15.

Under the proposed sale, the government — operating through the Ministry of Coal — will initially offer 6.16 crore equity shares, equivalent to 1% of Coal India's paid-up equity capital. The government also has the option to sell an additional 6.16 crore shares in case of oversubscription, which could increase the total issue size to 12.32 crore shares or 2% equity.

Coal India Q4 Results 2026

Coal India reported a stable performance in the March quarter, with consolidated profit after tax increasing 12% year-on-year to ₹10,908 crore. Revenue from operations also rose 6% to ₹46,490 crore, driven by better realizations and higher other income.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

The company's Board also announced a final dividend of ₹5.25 per share for FY26, subject to shareholders' approval at the upcoming AGM. Operationally, coal production in the quarter edged up to 239 million tonnes from 238 million tonnes a year ago, while offtake fell 2% to 199 million tonnes due to softer dispatches.

Brokerage Firm Recommendations

Brokerage firm Elara Capital has retained its 'accumulate' rating on the Coal India stock with a higher target price of ₹522 per share. Meanwhile, brokerage firm Emkay Global has reiterating 'add' rating with a target price of ₹450.