Coal India’s offer for sale (OFS) through stock exchanges on Wednesday oversubscribed more than 8 times. With this the government has decided to exercise green shoe option.
The government is selling over 12.32 crore, or up to 2 per cent stake, in Coal India at a floor price of ₹412 a share. The issue includes a green shoe option of 1 per cent.
“Offer for Sale in Coal India Ltd received enthusiastic response from investors and was over subscribed 8.14 times on the first day. Allocation will be on price priority basis. Government has decided to exercise the entire green shoe option,” Arunish Chawla, Secretary in the Department of Investment and Public Asset Management (DIPAM) said in a social media post. Retail investors and employees can bid on May 29 as there is holiday on Thursday.
Strong demand
Non-retail or institutional investors subscribed to more than 45.15 crore shares or over 8 times the shares reserved for them at an indicative price of ₹436.69 per share, much higher than the set floor price. At this indicative price, bids of over 45.15 crore shares amount to around ₹19,000 crore.
The floor price of ₹412 per share is at a 10 per cent discount over Tuesday’s closing price of ₹458.25 on the BSE. On Wednesday, shares of Coal India closed at ₹462.90, up 1.01 per cent over the previous close on BSE.
Coal India is the second OFS of a public sector company in the current fiscal year. Last week, the government sold 8.08 per cent stake in Central Bank of India via OFS and raised ₹2,266 crore. The FY27 Budget has estimated a mop-up of ₹80,000 crore through disinvestment and asset monetisation, more than double the ₹33,837 crore given in the Revised Estimates for FY26.