The Government of India has announced an Offer for Sale (OFS) for state-run coal giant Coal India Limited, with plans to sell up to a 2% stake in the company beginning Wednesday. According to an exchange filing, the government will initially offload 6.16 crore equity shares, representing 1% of Coal India’s paid-up equity capital. An additional 1% stake may also be sold through an oversubscription option, taking the total offer size to 12.32 crore shares.
The floor price for the OFS has been fixed at Rs 412 per share, nearly 10% lower than Coal India’s Tuesday closing price of Rs 455.90 on the NSE. The discounted pricing is expected to attract strong investor interest during the share sale window.The OFS will open for non-retail investors on May 27, while retail investors and eligible employees can participate on May 29. Stock markets will remain closed on May 28 due to Bakri Eid.The share sale will take place through a separate window mechanism on both the NSE and BSE, following SEBI guidelines.
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Additionally, up to 25,000 equity shares may be reserved for eligible employees, subject to approval.An Offer for Sale is a process through which existing shareholders — usually promoters or governments — sell shares directly through stock exchanges
The route is commonly used by the Centre as part of its disinvestment programme to reduce holdings in public sector companies while still retaining management control.Before the latest OFS announcement, the government held a 63.13% stake in Coal India. If the full 2% stake is sold, the Centre’s holding will reduce to around 61.13%, though it will continue to remain the majority shareholder.The move forms part of the government’s broader disinvestment strategy aimed at raising funds and increasing public shareholding in public sector enterprises.
