Key Highlights
- Coal India OFS oversubscribed in institutional investor category on Day 1
- Investors bid for over 11.5 crore shares by afternoon trade
- Government selling up to 2% stake in Coal India
- OFS floor price fixed at ₹412 per share
- Stake sale may fetch nearly ₹5,000 crore
- Green-shoe option likely to be exercised after strong demand
- Retail investors can bid on May 29
- Coal India shares traded lower during the session
- OFS part of government’s FY27 disinvestment strategy
New Delhi, May 27: Coal India witnessed strong investor participation in its Offer for Sale (OFS) on Wednesday, with the institutional portion getting oversubscribed on the very first day of bidding.
According to market data, non-retail investors placed bids for nearly 11.52 crore shares by afternoon trade, which was more than twice the shares reserved for institutional investors in the issue.
The strong response has increased the possibility of the government exercising the green-shoe option as part of the stake sale process.
Government Aims to Raise Around ₹5,000 Crore
The Government of India is selling up to a 2 percent stake in Coal India through the OFS route at a floor price of ₹412 per share. The offer also includes an additional 1 percent green-shoe option.
If fully subscribed, the stake sale is expected to generate nearly ₹5,000 crore for the government.
The floor price was set at around a 10 percent discount compared to Coal India’s previous closing price on the BSE, attracting strong interest from institutional buyers.
Retail Investors to Participate Later
Retail investors will be allowed to participate in the OFS on May 29, while May 28 remains a stock market holiday.
Coal India shares were trading lower during the session, reflecting normal market adjustments after the OFS announcement.
Part of Government’s Disinvestment Strategy
This marks the second major public sector OFS in the current financial year after the government recently diluted its stake in Central Bank of India through a similar route.
The Union Budget for FY27 has set an ambitious target of ₹80,000 crore through disinvestment and asset monetisation initiatives, significantly higher than the revised estimates for the previous fiscal year.
Market experts believe the strong institutional response to Coal India’s OFS reflects continued investor confidence in profitable public sector companies despite broader market volatility.
