The Centre on Tuesday announced plans to sell up to a 2% stake in Coal India Limited through an offer for sale (OFS), according to an exchange filing. The stake sale, being carried out by the Ministry of Coal, will take place via the OFS window on the BSE and NSE in line with SEBI guidelines.
Under the base offer, the government will divest up to 61.62 million equity shares, representing 1% of Coal India’s paid-up equity capital. An additional 61.62 million shares, another 1%, may be sold through an oversubscription option, the exchange filing showed.
The OFS also includes a small employee reservation component. Up to 25,000 shares may be offered to eligible employees, with each employee allowed to bid for shares worth up to Rs 5 lakh, subject to regulatory approvals and OFS rules.
The stake sale will be conducted over two trading sessions. On May 27, the OFS window will open exclusively for non-retail investors. Retail investors and employees will be allowed to participate on May 29, alongside non-retail investors opting to carry forward unallotted bids from the first day.
Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla posted on X that the floor price for the OFS has been fixed at Rs 412 per share.
“With strong operational and financial performance, consistent returns and attractive dividends, CIL continues to offer a compelling long-term investment opportunity,” Chawla added.
The Coal India OFS marks the second stake sale by the government in a public sector undertaking in the current financial year. Last week, the Centre raised Rs 2,266 crore by divesting an 8.08% stake in Central Bank of India through a similar OFS route.
The latest divestment move comes as the government targets Rs 80,000 crore through disinvestment and asset monetisation in FY27, more than double the revised estimate of Rs 33,837 crore for FY26 outlined in the Union Budget.
