- May 26, 2026
Coal India Offer For Sale Confirmed: Government To Sell Up To 2% Stake
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The government will initially sell 6.16 crore equity shares, representing 1% of Coal India’s total paid-up equity capital, as part of the base offer.
The green shoe option allows the government to retain flexibility to increase the size of the issue depending on investor demand during the offering period.
Coal India Limited will launch an Offer for Sale (OFS) on Wednesday, with the Government of India planning to sell up to 2% stake in the company, according to an exchange filing. The government will initially sell 6.16 crore equity shares, representing 1% of Coal India’s total paid-up equity capital, as part of the base offer. It also has 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 floor price for the OFS has been fixed at Rs 412 per share, nearly 10% lower than Coal India’s Tuesday closing price of Rs 455.90 on the NSE.
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 stock markets will remain closed on May 28 on account of Bakri Eid.
The share sale will be conducted through a separate window mechanism on both the BSE and NSE in line with SEBI’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. The government currently remains the promoter of Coal India.
What Is An Offer For Sale (OFS)?
An Offer for Sale is a mechanism through which existing shareholders, usually promoters or governments, sell shares directly through the stock exchange platform. It is commonly used by the government to dilute stake in public sector companies, raise funds and increase public shareholding. Investors place bids during a specified window while pricing is determined based on demand and the floor price set for the issue.
What Is Government Ownership In Coal India And How Will It Change After OFS?
Before the latest OFS, the Government of India held 63.13% stake in Coal India Limited. The company was fully government-owned when it was nationalised in 1975 but the stake gradually reduced following its IPO in 2010 and subsequent disinvestment rounds, including major OFS transactions in 2015. If the government fully exercises the additional oversubscription option and sells the entire 2% stake, its holding in Coal India would fall to around 61.13%, while it would still retain majority ownership and management control of the company.
Is This A Disinvestment Move?
Yes. The OFS forms part of the government’s broader disinvestment programme, under which it periodically reduces stake in public sector enterprises while continuing to retain controlling ownership in strategic companies such as Coal India.
Delhi, India, India
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