Institutional investors placed bids worth approximately Rs 19,000 crore for Coal India shares on the first day of the government's offer for sale (OFS) on Wednesday, as reported by PTI. The government is selling up to a 2 per cent stake, amounting to over 12.32 crore shares, at a floor price of Rs 412 per share. The issue includes a 1 per cent green-shoe option, with retail investors eligible to bid on May 29.
Strong Institutional Response
According to exchange data, non-retail or institutional investors subscribed to more than 45.15 crore shares, exceeding the reserved portion by over eight times, at an indicative price of Rs 436.69 per share. This price is significantly above the floor price of Rs 412. At the indicative price, the total bids are valued at around Rs 19,000 crore. The robust demand has increased the likelihood of the government exercising the green-shoe option in the OFS.
Pricing and Market Reaction
The floor price of Rs 412 per share was set at approximately a 10 per cent discount to Coal India's Tuesday closing price of Rs 458.25 on the BSE. On Wednesday, Coal India shares closed at Rs 462.90, up 1.01 per cent from the previous close on the BSE.
Government Disinvestment Plans
This is the second OFS by the government in the current financial year. Last week, the Centre sold an 8.08 per cent stake in Central Bank of India through an OFS, raising Rs 2,266 crore. In the FY27 Budget, the government has projected Rs 80,000 crore from disinvestment and asset monetisation, more than double the revised estimate of Rs 33,837 crore for FY26.
