New Delhi: Investors piled into the government’s stake sale in Coal India Ltd, with the offer-for-sale (OFS) drawing bids worth more than eight times the shares on offer on the first day, signalling confidence in the state-owned miner’s diversification push.
The issue was subscribed 8.14 times on Wednesday, according to department of investment and public asset management (Dipam) secretary Arunish Chawla.
“The government has decided to exercise the entire green shoe option,” Chawla, who has been mandated to raise ₹80,000 crore through disinvestment and asset monetisation in FY27, said in a post on social media platform X. Retail investors and employees will be able to bid on Friday, he added.
The OFS is part of the government’s broader disinvestment and public shareholding strategy aimed at improving market liquidity and raising non-tax revenue through stake sales in listed public sector enterprises.
The government aims to collect up to ₹5,000 crore by selling its shares in Coal India.
The floor price for the OFS, where existing shareholders or promoters divest stakes without issuing new shares, has been set at ₹412 per share.
According to data available on the Dipam website, the government currently holds 3.89 billion shares in Coal India, representing a 63.13% stake in the company.
Based on Wednesday's closing price of ₹463.60 per share, the government’s holding is valued at around ₹1.80 trillion, while Coal India’s total market capitalisation stands at about ₹2.85 trillion.
The strong response also reflects investor confidence in Coal India’s diversification plans into renewable energy and critical minerals, according to former coal secretary Amrit Lal Meena.
“Therefore, there is tremendous trust among investors in its market position. The company has a bright future in view of its wide-scale diversification plans into various sectors, including renewable energy and critical minerals,” he told Mint.
Coal India remains a key revenue-generating company for the government through dividends and taxes. The company accounts for over 80% of domestic coal production and continues to play a critical role in ensuring fuel supply to thermal power plants, which still contribute the bulk of India’s electricity generation.
