The Union government will sell more than 18.49 crore shares of Coal India Ltd., representing 3% of the entire shareholding of the company, through an offer for sale.
The OFS will open for non-retail investors on June 1. Retail investors and non-retail investors, who choose to carry forward their bids, can participate in the issue on June 2, the mining major told exchanges on Wednesday.
The OFS will be carried out via stock exchange mechanism through a separate designated window of the BSE and the National Stock Exchange.
The floor price for the OFS has been pegged at Rs 225 per share. This is at a 6.72% discount in comparison with Wednesday's closing price of Rs 241.20 for Coal India shares.
The government will offload more than 9.24 crore shares of Coal India, representing 1.5% stake, under the base offer size. In the event of oversubscription, an additional 9.24 crore shares will be offered, according to the filing.
If the oversubscription option is exercised, the government will collectively offload 3% equity shares of Coal India, the filing said.
Retail investors will be allowed to bid for shares worth up to Rs 2 lakh in the OFS.
The issue will have 5% of the offer size, over and above the offer shares, reserved for eligible and willing employees of the company.
Employees will be allowed to bid for shares up to Rs 5 lakh and will be allotted shares up to Rs 2 lakh. In the event of undersubscription in the employee portion, the total allotment to an employee can be extended to Rs 5 lakh.
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