Coal India shares fall nearly 7% as govt looks to raise ₹5,076 crore via OFS at 10% discount

Shares of Coal India Ltd (CIL) plunged nearly 7% in early trade on Wednesday after the government announced plans to sell up to a 2% stake in the state-run miner through an offer for sale (OFS). The Centre has fixed the OFS floor price at ₹412 per share, a discount of around 10% to Coal India’s Tuesday closing price on the BSE.

Weighed down by the announcement, Coal India shares fell as much as 6.6% to ₹427.80 in intraday trade, eroding the company’s market capitalisation to about ₹2.69 lakh crore. The stock had ended Tuesday’s session marginally higher by 0.05% at ₹458.25, valuing the company at ₹2.82 lakh crore.

The stock had touched a 52-week high of ₹490.90 on April 30, 2026, while its 52-week low stood at ₹368.55 on August 28, 2025.

In an exchange filing last evening, the world’s largest coal miner announced an offer for sale (OFS) of up to 2% equity stake, with the government aiming to raise ₹5,076 crore through the divestment exercise.

The OFS will open for non-retail investors on May 27, while retail investors and employees can bid on May 29. The market will remain closed on May 28 on account of Bakrid (Eid-ul-Adha).

Govt to pare up to 12.32 crore equity shares

Under the base offer, the government will offload 6.16 crore equity shares, representing 1% of Coal India’s paid-up equity capital. It also retains an oversubscription option to sell an additional 6.16 crore shares, taking the total issue size to 2% or about 12.32 crore shares.

“The President of India, acting through the Ministry of Coal, proposes to sell up to 61,627,283 equity shares, representing 1% of the total paid-up equity share capital of the company, with an option to additionally sell an equal number of shares in case of oversubscription,” the company said in a regulatory filing.

Non-retail investors will be allowed to place bids only on May 27. They will also have the option to carry forward any unallotted bids to the retail portion on May 29 and revise their bids in line with OFS guidelines.

Retail investors and eligible employees can bid on May 29. Non-retail investors carrying forward bids from Day 1 will also be permitted to revise their applications on the second day of the offer.

Analysts said the OFS is part of the Centre’s broader disinvestment and fiscal management strategy, while the discounted floor price could attract institutional participation.

The government currently holds a majority stake in the company, with a 63.13% equity shares. The remaining 36.87% represents public shareholding is distributed among institutional investors, mutual funds, and retail investors.

Allays coal supply worries

In a separate release, CIL allayed fears of coal shortage, stating that it has created a substantial buffer stock of 168 million tonnes (MT) to cater to higher electricity demand during the peak summer months.

The company said coal availability remains adequate for domestic coal-fired power plants despite a sharp rise in daily fuel consumption by thermal utilities. “CIL has been corresponding with power plants to build up their stocks for peak demand periods in advance, when there is ample coal, especially in case of the plants located at difficult logistic points.”

According to the PSU, coal inventory at domestic thermal power plants stood at 47.6 MT as of May 23, while stockpiles at mine pitheads were at 113.5 MT on May 24, marking an increase of nearly 10% compared to the same period last year. The company added that the current stock level is enough to cover around 19 days of consumption.

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