Coal India Share Price: Rs 5000 crore OFS opens for retail investors; PSU stock rally over 2% - Markets | Latest News Updates

Coal India Share Price: Shares of Coal India (a Maharatna company), the world’s largest coal producer, rose over 2 per cent on Friday (May 29) after the state-run miner’s Rs 5,000 crore offer for sale (OFS) opened for retail investors.

As of 10:00 am, shares of the BSE 100 company were trading 0.2 per cent higher, up Rs 1 at Rs 463.90. During the session, the stock climbed as much as Rs 474.20, marking an intraday gain of 2.4 per cent over the previous close.

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Retail investors get 10% reservation

Of the total offer size, 10 per cent, or around 1.23 crore shares, has been reserved for retail investors, subject to valid bids.

Additionally, up to 25,000 shares have been set aside for eligible employees of Coal India under the employee reservation category. Eligible employees can bid for shares worth up to Rs 5 lakh.

Non-Retail portion drew strong demand

The government’s up to 2 per cent stake sale in Coal India had opened for non-retail investors on Wednesday (May 27) at a floor price of Rs 412 a share.

On the first day itself, institutional investors placed bids worth around Rs 19,000 crore. Non-retail investors subscribed to over 45.15 crore shares, or more than 8 times the portion reserved for them, at an indicative price of Rs 436.69 per share, significantly above the floor price.

At this indicative price, bids for 45.15 crore shares translate to approximately Rs 19,000 crore.

Coal India shares had declined more than 6 per cent on Wednesday following the OFS announcement. However, the stock later recovered all losses and ended the session over 1 per cent higher.

OFS, or Offer for Sale, is a mechanism through which promoters sell shares of a listed company via stock exchanges, allowing investors to purchase shares in a transparent and market-driven manner.

Narendra Solanki, Head of Fundamental Research, Investment Services at Anand Rathi Shares and Stock Brokers, told The Economic Times that Coal India’s OFS at a floor price of Rs 412 is a decent opportunity for retail investors to enter the stock on a long-term basis.

Second PSU OFS this fiscal

This is the second offer for sale by a public sector company in the current financial year. Last week, the government sold an 8.08 per cent stake in Central Bank of India through OFS, raising Rs 2,266 crore.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)

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