India to Divest 2% Stake in Coal India Through Offer for Sale Worth ₹5,000 Crore
Govt to divest up to 2% stake in Coal India via OFS for Rs 5,000 cr
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The Government of India plans to divest up to 2% of its stake in Coal India Ltd through an Offer for Sale (OFS), targeting approximately ₹5,000 crore. The OFS will open for non-retail investors on May 27, 2026, and retail investors on May 29, 2026, with a floor price of ₹412 per share.
- 01The total issue size is estimated at ₹5,000 crore, with a floor price set at ₹412 per share.
- 02The base offer includes the sale of 6,16,27,283 shares, representing 1% of Coal India's equity, with an additional 1% available as a green shoe option.
- 03The floor price reflects a 10.1% discount to Coal India's last closing price of ₹458.15 on the NSE.
- 04Up to 25,000 shares may be allocated to eligible employees as part of the OFS guidelines.
- 05The sale is part of the government's broader disinvestment program for FY2027 aimed at improving public float and fiscal receipts.
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The Government of India has announced an Offer for Sale (OFS) for up to 2% stake in Coal India Ltd (CIL), aiming to raise approximately ₹5,000 crore. The OFS will feature a base offer of 1% of the company's equity, with an equal amount available as a green shoe option for oversubscription. The floor price is set at ₹412 per share, which is about 10.1% lower than CIL's last traded price of ₹458.15. The OFS opens for non-retail investors on May 27, 2026, and for retail investors on May 29, 2026. Additionally, eligible employees may receive up to 25,000 shares under the OFS guidelines. This initiative is part of the government's disinvestment strategy for FY2027, aimed at enhancing public float and increasing fiscal receipts. The discount on the share price is expected to attract institutional investors, while the retail and employee allocations will broaden participation in the sale.
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The divestment will enhance public ownership in Coal India and potentially improve the company's market liquidity.
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