Coal India share price tumbled 5.30% to ₹433.95 on NSE in Wednesday’s trading session after the central government announced a stake sale via the offer for sale (OFS) route. The stock opened at ₹429 apiece today, as compared to the previous close of ₹458.15 on Tuesday.
The stock has largely remained positive in the near term, soaring over 8.45% on a year-to-date (YTD) basis and 8.59% in a year. Furthermore, shares have delivered 80% returns in three years and multibagger gains of 200% in five years.
Coal India OFS details
The Government of India’s OFS for Coal India, wherein it plans to sell 2% stake, is open on May 27 and May 29, according to an exchange filing by the state-run miner on Tuesday.
The floor price for the OFS has been fixed at ₹412 per share, reflecting a discount of nearly 11.2% to the last closing price of ₹458.15.
Under the proposed sale, the government — operating through the Ministry of Coal — will initially offer 6.16 crore equity shares, equivalent to 1% of Coal India’s paid-up equity capital. It also has the option to sell an additional 6.16 crore shares in the event of oversubscription, which could increase the total issue size to 12.32 crore shares, or 2% of equity.
The OFS will be available to non-retail investors on May 27. Retail investors, eligible employees, and non-retail investors with carry-forward unallotted bids will be able to participate on May 29.
Additionally, subject to approval from the competent authority, up to 25,000 equity shares may be reserved for eligible employees of Coal India. Eligible employees will be allowed to bid for shares valued at up to ₹5 lakh.
The government continues to be the promoter of Coal India.
Coal India Q4 results 2026
reported a stable performance in the March quarter, with consolidated profit after tax increasing 12% year-on-year to ₹10,908 crore. Revenue from operations also rose 6% to ₹46,490 crore, driven by better realisations and higher other income.
The company’s Board also announced a final dividend of ₹5.25 per share for FY26. The dividend payout will be subject to shareholders’ approval at the upcoming AGM.
EBITDA for the quarter climbed 12% to ₹17,917 crore, while EBITDA margins improved to 39% from 36% in the corresponding period last year, reflecting stronger operating leverage.
Operationally, coal production in the quarter edged up to 239 million tonnes from 238 million tonnes a year ago. However, offtake fell 2% to 199 million tonnes due to softer dispatches, while overburden removal remained broadly unchanged at 577 million cubic metres.
Coal India share price: Should you buy or sell?
Brokerage firm Elara Capital has retained its ‘accumulate’ rating on the stock with a higher target price of ₹522 per share. “We retain Accumulate with a higher TP of INR 522 from INR 458, based on 6x FY28E EV/EBITDA. We have revised our TP on expected improvement in production volumes in FY27 due to rising power demand. We have revised our earnings estimates by 7.6%/13.7% for FY27E/FY28E, driven by better E-auction realisations. We introduce FY29E earnings estimate,” the brokerage firm said.
Meanwhile, brokerage firm Emkay Global has also reiterated ‘add’ rating with a target price of ₹450.
“We expect CIL to recover from FY26 production lows of 768mt to 815/850mt in FY27E/28E (5% CAGR), broadly in line with the projected power demand growth of 6- 7%. We view Q2FY26 as the trough, with a sequential improvement in Q3 and a likely stronger performance in Q4, followed by continued momentum into 1HFY27E, supported by a low base, improving power demand, and higher e-auction volumes and realisations, amid the ongoing US-Iran conflict. Reiterate ADD and target price of Rs450,” the firm said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.