Coal India Shares Fall 6% as Govt Launches OFS at 10% Discount 

Shares of Coal India Limited fell sharply on 27 May, hitting an intraday low of Rs 428.40 on the NSE after the government announced an Offer for Sale in the company late Tuesday evening. At one point during the session, the stock was down over 6%.

The Ministry of Coal, acting on behalf of the President of India, plans to sell up to 61.63 million equity shares, equal to 1% of Coal India’s total paid-up capital. 

The floor price is Rs 412 per share, nearly 10% below Tuesday’s NSE closing price of Rs 458.15.

Should the greenshoe option be exercised, a further 61.63 million shares come onto the table, taking the total stake on offer to 2%. At the floor price across both tranches, the government could raise around Rs 5,078 crore.

The OFS opened today for non-retail investors. Retail investors and employees can place bids on 29 May. Up to 25,000 equity shares may be offered to eligible employees under the OFS, as per the exchange filing.

This is the second PSU stake sale by the Centre in FY27. Last week, the government raised Rs 2,266 crore through an 8.08% stake sale in the Central Bank of India via the same OFS route. 

The broader disinvestment target for FY27 stands at Rs 80,000 crore, more than double the Rs 33,837 crore revised estimate from last year’s budget.

At 10:21 am, shares of Coal India were trading at Rs 445.00 on the NSE, down by 2.87% from the previous close. Over the past year, the stock has gained 11.26%, against the Nifty 50’s decline of 3.51% in the same period.

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