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Government Opens 2% Coal India Stake Sale at ₹412 as Shares Fall

A ₹412 floor price prompted intraday selling as non-retail bids opened on May 27.

Overview

  • The Centre launched an Offer For Sale to sell a base 1% stake in Coal India with a 1% greenshoe option, offering up to 12.32 crore shares at a floor price of ₹412 per share.
  • Non-retail investors could bid on May 27 and retail and employee windows are scheduled for May 29 under SEBI’s separate-window OFS rules.
  • Coal India’s shares fell sharply on the opening of the OFS because the floor price is roughly 10% below recent market levels and adds visible supply to the market.
  • Institutional demand was strong on day one with large bids reported and Coal India said it holds a 168 million tonne coal buffer to reassure suppliers and electricity users.
  • If the full 2% is sold at ₹412 the exercise would raise about ₹5,000 crore while the government would remain the majority promoter with roughly a 61% holding, and the sale feeds into the higher FY27 disinvestment target.