The government's Coal India Limited offer for sale (OFS) is scheduled to open for retail investors on Friday, May 29 after a good response from non-retail investors on Wednesday.
The OFS opened for non-retail investors on May 27, with the retail portion expected to be opened tomorrow. 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.
On Wednesday, Coal India in an exchange filing informed that the Indian government will opt for the greenshoe option or oversubscription option for the offer for sale issue.
Coal India Ltd.'s 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.
In the greenshoe option, the government will sell an additional 1% stake, resulting in another 6.16 crore equity shares and taking the total offer size up to 12.3 crore shares or up to 2% stake.
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"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 read.
Previous stake sales
Coal India launched its IPO in 2010 at Rs 245 per share. Since then, the government has undertaken multiple stake sales in the miner.
In January 2015, the government sold a 10% stake and raised Rs 22,000 crore at Rs 358 per share. In October and November 2018, it sold a 3% stake for Rs 5,300 crore at Rs 266 per share. Another 3% stake sale in May and June 2023 raised Rs 4,185 crore at Rs 225 per share. In June 2023, the government sold a 0.15% stake for Rs 209 crore at Rs 226 per share.
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