Government plans to sell upto 3% stake in Coal India

In a recent development, the Government has expressed its intention to sell 3% of its stake in Coal India in a two-day offer-for-sale (OFS). The government plans to raise about Rs 4,200 crore from this stake sale.

As a base offer, the government looks to sell up to 9.24 crore shares of Coal India, constituting 1.50% of the total paid-up equity. Further, it also has the option to sell additional 9.24 crore shares or a 1.5% stake in case there is an oversubscription.

Non-retail investors can subscribe to the OFS on Thursday, while retail investors can subscribe on Friday. The offer’s floor price has been set at Rs 225, a 6.7% discount to Wednesday’s closing price of Rs 241.20. About 10% of the offer will be set aside for retail investors.

Non-institutional bidders can indicate their willingness to carry forward their unallocated bids to Friday for allocation if the retail category remains unsubscribed.

So far in FY24, this is the first large-stake sale by the government to meet its divestment target of Rs 51,000 crore.

Currently, the government holds a 66.13% stake in Coal India.

At around 10.03 AM, Coal India was trading 4.27% lower at Rs 230.95, against the previous close of Rs 241.25 on NSE. The counter hit an intraday low of Rs 229.55.

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