Coal India OFS - Government to divest up to 2% stake to Raise ₹5,000 Crore

27 May 2026 , 12:29 PM

The Government of India has announced an Offer for Sale (OFS) in Coal India Limited to divest up to a 2 per cent stake and raise nearly ₹5,000 crore for the exchequer. The move forms part of the Centre’s broader disinvestment and asset monetisation strategy for FY27.

According to DIPAM Secretary Arunish Chawla, the OFS has been priced at a floor price of ₹412 per share, which is nearly 10 per cent lower than Coal India’s prevailing market price, making the issue attractive for investors seeking discounted entry into the PSU giant.

The OFS will consist of a base offer of 1 per cent equity stake, along with an additional 1 per cent green shoe option that can be exercised in case of strong investor demand and oversubscription.

OFS Opens for Investors on May 27 and May 29

The offer will open for non-retail investors on May 27, while retail investors will be able to participate from May 29. Through the issue, the government plans to offload up to 12.32 crore shares.

At the announced floor price of ₹412 per share, the government is expected to mobilise around ₹5,000 crore through the transaction.

Shares of Coal India Limited closed at ₹458.25 on the BSE on Tuesday, marginally higher by 0.25 per cent from the previous close. The discounted OFS pricing is expected to attract institutional as well as retail participation.

Coal India Remains Attractive Long-Term Bet: DIPAM

DIPAM Secretary Arunish Chawla said Coal India continues to remain an attractive long-term investment opportunity backed by strong operational performance, healthy financials, robust cash flows, and consistent dividend payouts.

Coal India has remained one of the highest dividend-paying public sector companies in India, making it popular among income-focused investors. The company’s dominant market position and stable profitability continue to support investor confidence despite ongoing discussions around energy transition and renewable adoption.

Second PSU OFS in FY27

The Coal India OFS becomes the second public sector disinvestment transaction in FY27 after the government recently sold an 8.08 per cent stake in Central Bank of India through an OFS.

The Centre had raised ₹2,266 crore from the Central Bank of India stake sale conducted last week.

In the Union Budget for FY27, the government has set a disinvestment and asset monetisation target of ₹80,000 crore. The target is significantly higher than the revised FY26 estimate of ₹33,837 crore, indicating an aggressive push toward monetisation of state-owned assets.

With the Coal India OFS now underway, market participants will closely track investor response, especially given the discounted pricing and the company’s strong dividend track record.

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