Government launches Coal India OFS to sell up to 2% stake at ₹412 per share

The government on Tuesday announced the sale of up to a 2% stake in state-run Coal India Ltd through an offer for sale (OFS), with a floor price fixed at ₹412 per share — nearly 10% lower than the stock’s closing price on the BSE.

The stake sale, which includes a base offer of 1% equity and an additional 1% green shoe option in case of oversubscription, is expected to help the government mobilise nearly ₹5,000 crore.

According to the schedule, the OFS will open for non-retail investors on May 27, while retail investors can bid on May 29.

The move comes at a time when the government is accelerating its disinvestment and asset monetisation programme to shore up revenues while retaining management control in strategically important public sector enterprises.

Announcing the move on social media platform X, DIPAM Secretary Arunish Chawla said: “Government of India announces OFS in Coal India Limited with a base offer of 1 per cent of its equity and an additional 1 per cent Green Shoe Option in case of oversubscription. Floor price fixed at Rs 412 per share.”

Shares of Coal India closed at ₹458.25 on the BSE on Tuesday, marginally higher than the previous close.

Chawla said Coal India continues to remain an attractive long-term investment opportunity backed by strong operational performance, healthy financials and steady dividend payouts.

The Coal India OFS marks the government’s second disinvestment transaction in the current financial year. Earlier this month, the Centre raised ₹2,266 crore by selling an 8.08% stake in Central Bank of India through a similar route.

In the Union Budget for FY27, the government projected receipts of ₹80,000 crore from disinvestment and asset monetisation, more than double the revised estimate of ₹33,837 crore for FY26.

Coal India, which accounts for over 80% of the country’s coal production, remains one of the Centre’s most valuable listed holdings and a key dividend-paying PSU. The company has also benefited from sustained domestic coal demand, improved production levels and strong profitability over the past few years despite the global transition towards cleaner energy sources.