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Coal India OFS sees Rs 19,000 crore bids as institutional investors subscribe 8.14 times
Institutional investors subscribed 8.14 times on day one of the Coal India OFS, bidding about Rs 19,000 crore at an indicative price above the floor. The Government of India is selling up to a 2 per cent stake, including a 1 per cent green shoe option, with retail bidding set for 29 May.
Institutional investors placed bids of about Rs 19,000 crore for Coal India shares on Wednesday. The offer for sale was subscribed 8.14 times on the first day. The government is offering over 12.32 crore shares, or up to a 2 per cent stake. The offer also includes a 1 per cent green-shoe option.
DIPAM Secretary Arunish Chawla said investors showed strong interest in the offer. Chawla said allocation will follow price priority. "Government has decided to exercise the entire green shoe option,\" Chawla said on X. Retail investors will bid in the OFS on May 29.
Coal India OFS draws heavy institutional bids
Non-retail or institutional investors applied for more than 45.15 crore shares on Wednesday. That was over eight times the shares reserved for that category. The indicative price was Rs 436.69 per share, higher than the floor rate. At that level, the bids worked out to around Rs 19,000 crore.
The government set a floor price of Rs 412 per share for the Coal India OFS. This floor was at a 10 per cent discount to Tuesday’s BSE close. Coal India had ended Tuesday at Rs 458.25 on the BSE. The discount aimed to attract demand during the sale.
Coal India share price and market close
Coal India shares ended higher on Wednesday even as the OFS ran. The stock closed at Rs 462.90 on the BSE. That was up 1.01 per cent from the previous close. The closing price stayed above both the floor price and indicative bid price.
Coal India OFS and India disinvestment targets
The Coal India sale is the second OFS by a public sector company in the current fiscal year. Last week, the government sold an 8.08 per cent stake in Central Bank of India. That OFS raised Rs 2,266 crore. The transactions are part of the wider disinvestment programme.
The FY27 Budget projected Rs 80,000 crore from disinvestment and asset monetisation. This estimate is more than double the Revised Estimates for FY26. The FY26 revised figure was Rs 33,837 crore. Coal India’s OFS is among the steps aligned with that target.
With inputs from PTI
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