Government to sell up to 2% in Coal India; OFS opens Wednesday

New Delhi: The government will sell up to 2 per cent stake in Coal India through an offer for sale at a floor price of Rs 412 apiece beginning Wednesday.

The sale of up to 2 per cent stake or about 12.32 crore shares at Rs 412 apiece would fetch about Rs 5,000 crore to the exchequer.

The OFS (offer for sale) 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 per cent of its equity and an additional 1 per cent Green Shoe Option in case of oversubscription. Floor price fixed at Rs 412 per share," Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said in a post on X.

Shares of Coal India closed at Rs 458.25 on the BSE on Tuesday, up 0.25 per cent from the previous close.

The floor price of Rs 412/share is at a 10 per cent 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 per cent in Central Bank of India via OFS and raised Rs 2,266 crore.

The FY27 Budget has estimated a mop up of Rs 80,000 crore through disinvestment and asset monetisation, more than double the Rs 33,837 crore given in the Revised Estimates for FY26.