Government of India will sell up to a 2% stake in Coal India Limited (CIL) through an offer for sale (OFS) over May 27 and May 29, the state miner said on Tuesday in a filing to the exchanges. The floor price for the offer has been set at Rs 412 per equity share, a 10% discount from today's closing price of Rs 455.90 on the NSE.
The government, which operates under the aegis of the Ministry of Coal, has proposed to sell 6.16 crore equity shares, representing 1% of Coal India’s total paid-up equity capital, as the base offer size. The government also retains an oversubscription option to sell an additional 6.16 crore shares, taking the total potential offer size to 12.32 crore shares or 2% equity.
The OFS will open for non-retail investors on May 27, while retail investors, eligible employees and non-retail investors carrying forward unallotted bids can participate on May 29.
Indian markets will remain shut on Thursday, May 28 on account of Bakri-Eid.
The share sale will be conducted through a separate window mechanism on BSE and the National Stock Exchange in accordance with the Securities and Exchange Board of India’s OFS guidelines.
Additionally, up to 25,000 equity shares may be offered to eligible employees of Coal India, subject to approval from the competent authority. Eligible employees can bid for shares worth up to Rs 5 lakh.
The government currently remains Coal India's promoter.
Coal India reported a steady March quarter performance, with consolidated profit after tax rising 12% YoY to Rs 10,908 crore, while revenue from operations increased 6% to Rs 46,490 crore, supported by improved realizations and higher other income.
Further, the Board also declared a final dividend for FY26 at Rs 5.25 per share. Payment of the final dividend for FY26 will be made subject to approval of shareholders in the ensuing AGM.
(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)
