The Indian government is divesting 9 percent of its stake in Coal India Ltd. It owns 78.3 percent in the coal miner and will be selling its decided stake through a two-day sale offer, starting Wednesday.

Out of the 9 percent, 3 percent will be offered for sale through a greenshoe option and the rest 6 percent will be offered to financial institutions and retail investors through OFS at a floor price of Rs 266 per share.

As mentioned before, the government owns 78.3 percent, which means Coal India is 3.3 percent short of making 25 percent mandatory public holding mark to comply.

In April to June quarter, 0.225 percent of the government's holding in the miner was sold by placing shares in 'Bharat 22-ETF'.

Offer details

• Share details: 18.62 crore shares through Offer-for-sale (OFS), 37.24 shares through greenshoe option
• Floor price: Rs 266 per share
• Discount of 4 percent, with an additional discount of 5 percent option available for retail investors.
• Opens 31 October and available during market hours (9:30 am to 3:30 pm) on both windows of BSE and NSE.
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• 31 October (T-day): Only non-retail Investors can place their bids on the T day. They can indicate their willingness to carry forward their pending bids to T+1 day (1 November) will placing their bids, to seek allocation in the unsubscribed portion of Retail Category.
• 1 November: (T+1 day): Only retail Investors shall be allowed to place their bids only on T+1 day and may get an additional discount of 5 percent. Any non-Retail Investors who had placed their bids on T day and carried forward their pending bids to T+1 day will be allowed to revise their bids on T+1 day as per the OFS guidelines.
• 20 percent of the offer size will be made available for retail investors. Single bidders other than mutual funds and insurance companies will not be allocated 25 percent of the offer shares.

Shares of Coal India were trading lower in morning trade today, extending its losses to the second session.