Disinvestment: Govt to offload 2% stake in Coal India via OFS at Rs 412 a share, offer opens May 27

New Delhi: The Central government has kicked off a disinvestment of up to 2 percent of its equity in Coal India Limited (CIL) through an offer for sale (OFS), pricing the issue at a floor of Rs 412 per share. The sale of approximately 12.32 crore shares at this price is expected to bring in about Rs 5,000 crore to the exchequer.

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Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla announced the OFS on X, saying: "Government of India announces OFS in Coal India Limited with a base offer of 1 percent of its equity and an additional 1 percent Green Shoe Option in case of oversubscription. Floor price fixed at Rs 412 per share."

The OFS opens for non-retail investors on Wednesday, May 27. Retail investors will get their window on May 29.

Discount to market and investment case

CIL shares ended Tuesday's session at Rs 458.25 on the BSE, up 0.25 percent from the previous close. The floor price of Rs 412 per share represents a discount of roughly 10 percent to that closing price, offering investors an entry point below prevailing market levels.

Chawla pitched the stock as a long-term bet, adding: "With strong operational and financial performance, consistent returns and attractive dividends, CIL continues to offer a compelling long-term investment opportunity."

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Second PSU disinvestment of the fiscal year

The Coal India OFS is the second offer for sale of a public sector company in FY27. The government last week divested 8.08 percent of its stake in Central Bank of India through a similar route, raising Rs 2,266 crore.

The FY27 Union Budget has set a disinvestment and asset monetisation target of Rs 80,000 crore — more than double the Rs 33,837 crore recorded in the revised estimates for FY26 — signalling an aggressive push to step up receipts from state-owned enterprises.

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