The announcement confirms CNBC-TV18’s May 7 newsbreak on a potential stake sale in Coal India Limited. According to the Department of Investment and Public Asset Management (DIPAM), the OFS will open for non-retail investors on May 27 and for retail investors on May 29.
The government has fixed the OFS floor price at ₹412 per share, implying a discount of around 10.1% to Coal India’s closing price on May 26.
The base issue size comprises up to 1% of Coal India’s paid-up equity share capital, amounting to nearly ₹2,539 crore at the floor price. The government also has a greenshoe option of an additional 1% stake sale in case of oversubscription, taking the total issue size to as much as ₹5,078 crore.
DIPAM Secretary Arunish Chawla said Coal India continues to offer a compelling long-term investment opportunity backed by strong operational and financial performance, consistent shareholder returns and attractive dividend payouts.
When CNBC-TV18 had first reported the development earlier this month, Coal India had said it had not received any official communication from the government regarding a potential OFS, while comments from DIPAM were awaited at the time.
At the end of the March quarter, the government held a 63.1% stake in Coal India Limited.
Among institutional investors, Life Insurance Corporation of India held an 11.05% stake in the company, while domestic mutual funds collectively owned 9.5%. Foreign portfolio investors held an 8.38% stake, while over 25 lakh retail shareholders owned 3.82% of the company.
