In a significant move, the government's offer-for-sale (OFS) of Coal India Ltd attracted overwhelming interest from investors, with bids exceeding eight times the shares available on the first day. This strong response reflects confidence in the state-owned miner's diversification efforts.
As reported by Arunish Chawla, secretary of the Department of Investment and Public Asset Management (Dipam), the OFS was subscribed 8.14 times on Wednesday. The government plans to utilize the entire greenshoe option, aiming to raise ₹80,000 crore through disinvestment and asset monetization in FY27.
Retail investors and employees will have the opportunity to participate in the bidding process on Friday. The government anticipates raising up to ₹5,000 crore from the sale of its shares in Coal India, with a floor price set at ₹412 per share.
Currently, the government holds approximately 3.89 billion shares in Coal India, amounting to a 63.13% stake. Based on the closing price of ₹463.60 per share on Wednesday, this holding is valued at around ₹1.80 trillion, while Coal India's total market capitalization is approximately ₹2.85 trillion.
Investor enthusiasm is also attributed to Coal India's strategic plans to diversify into renewable energy and critical minerals. Former coal secretary Amrit Lal Meena noted that this diversification is fostering trust among investors regarding the company's future prospects.
Coal India plays a vital role in India's energy landscape, contributing over 80% of domestic coal production and ensuring a steady fuel supply for thermal power plants, which are crucial for electricity generation in the country.
