Govt to sell up to 2% in Coal India; OFS opens today

PTI New Delhi

The government will sell up to 2% stake in Coal India through an offer for sale (OFS) beginning on Wednesday. The disinvestment of up to 2% stake, comprising about 12.32 crore shares at a floor price of ₹412 apiece, would fetch about ₹5,000 crore to the exchequer.

The OFS will open for non-retail investors on May 27 and for retail investors on May 29. 

"Government of India announces OFS in Coal India Limited with a base offer of 1% of its equity and an additional 1% Green Shoe Option in case of oversubscription. Floor price fixed at ₹412 per share," DIPAM Secretary Arunish Chawla said in a post on X. 

Shares of Coal India closed at ₹458.25 on the BSE on Tuesday, up 0.25% from the previous close. The floor price of ₹412 per share is at a 10% discount over the current market price. With strong operational and financial performance, consistent returns and attractive dividends, CIL continues to offer a compelling long-term investment opportunity, Chawla added. 

Coal India would be the second OFS of a public sector company in the current fiscal year. Last week, the government sold 8.08% in the Central Bank of India via OFS and raised ₹2,266 crore. The FY27 Budget has estimated a mop-up of ₹80,000 crore through disinvestment and asset monetisation, more than double the ₹33,837 crore given in the Revised Estimates for FY26.