Coal India OFS opens: Govt to sell up to 2% stake; check floor price, retail participation details

The sale of up to a 2% stake, or about 12.32 crore shares at ₹412 apiece, would fetch about ₹5,000 crore to the exchequer.

The OFS will open for non-retail investors on May 27 and for retail investors on May 29.

"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."

Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla announced that the floor price is fixed at ₹412 per share in a post on X.

Shares of Coal India closed at ₹458.25 on the BSE on Tuesday, up 0.05% from the previous close.

On the NSE, shares ended at 458.15, up 0.03%.

The floor price of ₹412/share is at a 10% discount over the current market price.

With strong operational and financial performance, consistent returns, and attractive dividends, CIL continues to offer a compelling long-term investment opportunity, Chawla added.

Coal India would be the second OFS of a public sector company in the current fiscal year. Last week, the government sold 8.08% in the Central Bank of India via OFS and raised ₹2,266 crore.

The FY27 Budget had estimated a mop-up of ₹80,000 crore through disinvestment and asset monetisation, more than double the ₹33,837 crore given in the revised estimates for FY26.

Why does the govt launch OFS from time to time in PSUs?

The government launches OFS (Offer for Sale) in PSUs from time to time, mainly to raise funds, meet its disinvestment targets, and increase public shareholding in state-run companies. It also helps improve liquidity in PSU stocks and brings wider retail investor participation.

Coal India: Latest updates

State-owned CIL on Tuesday allayed fears of a coal shortage, saying it has built up a buffer of 168 million tonnes (MT) to meet increased demand during the summer season.

The company said it has an adequate quantity to meet the generation capacity of domestic coal-based plants, even as daily consumption of the dry fuel by thermal power plants soared.

In a statement, the PSU said its coal stocks at domestic coal-based power plants stood at 47.6 million tonnes (MT) as of May 23, while inventory at the mine heads was at a comfortable 113.5 MT on May 24, up about 10% from the year before, adding that this level is sufficient to meet 19 days of consumption.

"Added to this, around three MT of coal is awaiting transit points such as goods sheds, private washeries, and ports. Rakes on Run, that is, coal in transit at any point of time, are around 4 MT, making a total of 168 MT of coal available in the system," the statement said.