Govt offering up to 2 percent Coal India shares for sale on May 27-29
Mumbai, May 26
The Centre will sell up to a 2 per cent stake in public sector mining giant Coal India Limited through an offer for sale from May 27 to May 29, the company informed the stock exchanges on Tuesday.
The floor price for the offer has been set at Rs 412 per equity share, which represents a 10 per cent discount on Tuesday's closing price of Rs 455.90 on the National Stock Exchange (NSE).
The government has proposed to sell 6.16 crore equity shares, constituting 1 per cent of Coal India's total paid-up equity capital, as the base offer size. The government also retains an oversubscription option to sell an additional 6.16 crore shares, taking the total potential size of the offer to 12.32 crore shares, which works out to 2 per cent of the total equity.
The OFS will be thrown open for non-retail investors on May 27, while retail investors, eligible employees, and non-retail investors carrying forward unallotted bids can participate on May 29. There is a day's gap as the Indian stock markets will remain closed on May 28 (Thursday) because of the Eid holiday.
The share sale will be carried out through a separate window mechanism on BSE and the National Stock Exchange in accordance with the Securities and Exchange Board of India's OFS guidelines.
In addition, up to 25,000 equity shares may be offered to eligible employees of Coal India, subject to approval from the competent authority. Eligible employees can bid for shares worth up to Rs 5 lakh.
Coal India had announced a net profit of Rs 10,908 crore for the Jan-March quarter of 2025-26, which represented a 12 per cent increase over the same quarter of the previous financial year. The company's revenue from operations rose by 6 per cent to Rs 46,490 crore during the quarter.
The company's board declared a final dividend of Rs 5.25 per share for 2025-26.
— IANS
Reader Comments
I'm an NRI investor and have been holding Coal India for years. The dividend yield is attractive, especially with the Rs 5.25 final dividend announced. This OFS at a discount seems like a good chance to average down. But I worry about the global shift away from coal - India's energy transition is inevitable.
I'm all for disinvestment when it helps the economy, but selling shares of a profitable PSU at a discount? The floor price is 10% below market rate - that's Rs 412 vs Rs 455.90. Why not just let the market decide? Feels like we're giving away value. Still, as a retail investor, I might buy a few shares for the dividend. 📈
Hello, I work in the energy sector. Coal India is still a cash cow for the government - it supplies most of India's thermal coal. Yes, green energy is coming, but coal will be relevant for at least another 20 years in India given our power needs. This OFS is a smart move to raise revenue without borrowing. Employees getting 25,000 shares is a nice bonus too.
I've been following Coal India's quarterly results - profit up 12% to Rs 10,908 crore is impressive. But I'm cautious about this OFS because the timing around Eid holiday might affect liquidity with just two trading days. Also, coal stocks globally are under pressure from ESG investors. For short-term traders, the discount is tempting though. 🤔
Good move by the government - they need to meet the disinvestment target and Coal India is a
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