- Coal India will launch a fresh OFS with up to Rs 5,000 crore in shares on Wednesday
- Government to sell 1% stake at Rs 2,500 crore plus 1% via green shoe option for Rs 2,500 crore
- Floor price set at Rs 412 per share, about 10% below prevailing market price at announcement
Coal India Limited will launch a fresh Offer for Sale (OFS) on Wednesday, with up to Rs 5,000 crore worth of shares to change hands, the company confirmed. The confirmation came shortly after NDTV Profit reported about the upcoming OFS.
In the proposed OFS the government will sell 1% stake in a base issue size of Rs 2,500 crore, while an additional 1% will be sold for Rs 2,500 crore through a green shoe option, taking the total potential transaction size to Rs 5,000 crore. The floor price has been fixed at Rs 412 per share, which represents around a 10% discount to the prevailing market price at the time of announcement.
Market chatter around the stake sale had been building for several days, with dealer reports telling NDTV Profit on May 14 suggesting that an OFS was likely in the pipeline. By May 25, government sources told NDTV Profit that a 2% equity stake sale in Coal India was being prepared. The final details were formally announced on May 26 evening, after NDTV Profit reported on the OFS an official government confirmation came at around 7:40 pm.
ALSO READ: Coal India OFS Expected Soon; Up To Rs 5,000-Crore Stake Sale Likely
The stake sale forms part of the government's broader disinvestment programme and marks another step in monetising holdings in state-run enterprises. Over the last 16 years, the government has already raised close to Rs 47,000 crore through stake sales in Coal India. With the latest OFS, total proceeds from the company are expected to rise to nearly Rs 52,000 crore.
Coal India's market journey remains one of the most significant in India's PSU disinvestment history. The company's initial public offering in 2010 was priced at Rs 245 per share, marking one of the largest IPOs of its time. Since then, it has remained a key component of government divestment plans while also being one of the most actively traded PSU stocks.
The current OFS is expected to attract strong interest from institutional investors given the discount to market price and the liquidity of the stock. The structure allows the government to efficiently reduce its stake while maintaining market stability through a staggered bidding mechanism.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
