Govt launches Rs 5,000 cr Coal India OFS; floor price set at Rs 412, 10 pc discount to market

NEW DELHI: The Government of India has announced an Offer for Sale (OFS) in Coal India Ltd (CIL), aiming to divest up to 2 per cent stake in the state-run miner through a base offer and green shoe option, with a floor price fixed at Rs 412 per share. The total issue size is pegged at approximately Rs 5,000 crore at the floor price.

Under the offer structure, the President of India, acting through the Ministry of Coal, will sell up to 6,16,27,283 equity shares, or 1.00 per cent of outstanding paid-up equity, as the base offer size. An equal quantum is kept as the oversubscription option, taking the total potential offer to 12,32,54,566 shares, or 2.00 per cent of the company’s equity. At the floor price, the base offer is valued at Rs 2,539 crore and the total offer at Rs 5,078 crore.

The floor price of Rs 412 represents a discount of about 10.1 per cent to CIL’s last close of Rs 458.15 on the NSE as on May 26, 2026. Additionally, up to 25,000 equity shares may be offered to eligible employees of the company, as per OFS guidelines. The OFS opens for non-retail investors on May 27, 2026 and for retail investors on May 29, 2026.

Announcing the sale, the Secretary, Department of Investment and Public Asset Management (DIPAM), posted on X: “Government of India announces OFS in Coal India Limited with a base offer of 1% of its equity and an additional 1% Green Shoe Option in case of oversubscription. Floor price fixed at ₹412 per share. OFS opens for non-retail investors on 27 May 2026 and for retail investors on 29 May 2026. With strong operational and financial performance, consistent returns and attractive dividends, CIL continues to offer a compelling long-term investment opportunity.”

Coal India, the world’s largest coal producer, remains a key dividend-paying PSU with a track record of cash generation and payouts. The OFS is part of the government’s broader disinvestment programme for FY2027 and will help improve public float while aiding fiscal receipts.

The 10.1 per cent discount to the last traded price is likely to draw institutional interest, while the retail window and employee quota broaden participation. Allotment to retail investors will be at a cut-off price discovered in the non-retail category. With the base size at 1 per cent and a green shoe of another 1 per cent, the government retains flexibility to raise around Rs 5,000 crore if the issue is fully subscribed at the floor price. (ANI)