- The Indian government will exercise the greenshoe option in Coal India's offer for sale issue
- Non-retail investors bid for 24.6 crore shares against the base offer of 5.54 crore shares
- The greenshoe option will add 6.16 crore shares, raising the total offer to 12.3 crore shares
The Indian government will opt for the greenshoe option or oversubscription option for the offer for sale issue of Coal India Ltd., according to an exchange filing on Wednesday.
Coal India Ltd.'s offer for sale (OFS) issue received non-retail investor bids for 24.6 crore equity shares, as against an offer size of crore 5.54 shares, translating into an oversubscription of 443.65% or 4X times.
Under the greenshoe option, the government will sell an additional 1% stake, aggregating to another 6.16 crore equity shares and taking the total offer size up to 12.3 crore shares or up to 2% stake.
"We wish to exercise the Oversubscription Option to the extent of 61,627,283 Equity Shares (representing 1.00% of the total paid-up equity share capital of the Company) in addition to 61,627,283 Equity Shares of the Company, (representing 1.00% of the total paid-up equity share capital of the Company) forming part of the Base Offer Size," the filing stated.
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The government launched the OFS with a base size of Rs 2,500 crore and a green shoe option of another Rs 2,500 crore, taking the total issue size to Rs 5,000 crore.
The OFS opened for non-retail investors on May 27, while the retail portion will open on May 29 for 10% of the total offer. The floor price was fixed at Rs 412 per share against the last traded price of Rs 444.85 on the BSE. The indicative price stood at Rs 417.48 per share.
Additionally, up to 25,000 Equity Shares of the Company will also be offered to eligible employees of the Company, in accordance with the terms and conditions provided in the OFS Guidelines, as per the filing.
Disinvestment Push
The share sale forms part of the government's disinvestment programme and adds to a series of stake sales in Coal India over the past 16 years. With the latest OFS, the government's total proceeds from stake sales in the company, including the IPO, are expected to rise to around Rs 52,000 crore.
Coal India Share Price
The stock ended 1.19% higher at Rs 463.60 apiece on the NSE on Wednesday. This compared to a marginal decline of 0.03% in the benchmark Nifty index.
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