$COALINDIA

The central government on May 26 announced plans to divest up to a 2 percent stake in Coal India Limited through an offer for sale (OFS). According to a post by the DIPAM Secretary on X, the OFS includes a base offer of 1 percent equity, along with an additional 1 percent greenshoe option in the event of oversubscription. The floor price for the issue has been set at Rs 412 per share, nearly 10 percent lower than Coal India’s closing price of Rs 455.90 on May 26. The OFS will open for non-retail investors on May 27, while retail investors can participate on May 29. Highlighting the company’s strong operational and financial performance, consistent returns, and attractive dividend payouts, the DIPAM Secretary described Coal India as a compelling long-term investment opportunity. In a stock exchange filing, Coal India stated that the Ministry of Coal plans to sell 6.16 crore equity shares, representing 1 percent of the company’s total paid-up equity capital, as part of the base offer. In case of oversubscription, the government may exercise the greenshoe option to sell an additional 6.16 crore shares, increasing the total offer size to 12.32 crore shares, or 2 percent equity.