Non-Retail Portion Of Coal India OFS Fully Subscribed Amid Strong Demand

The government’s offer for sale (OFS) in Coal India Limited received full subscription from non-retail investors on the first day of bidding, according to data available on the BSE. The OFS, which opened for institutional and non-retail investors on May 27, garnered strong demand with bids exceeding the number of shares on offer.

BSE data showed that the issue received bids for 6.64 crore shares against the offered size of 5.54 crore shares, resulting in a subscription level of nearly 119.88%. The retail investor portion of the OFS is scheduled to open on May 29. The government fixed the floor price for the share sale at Rs 412 per share, lower than Coal India’s previous closing price of Rs 444.85 on the BSE. The indicative market price during the bidding process stood at Rs 417.48 per share.

The Centre launched the OFS with a base issue size of Rs 2,500 crore along with a green shoe option of an additional Rs 2,500 crore, taking the total potential issue size to Rs 5,000 crore. The latest transaction forms part of the government’s broader disinvestment strategy aimed at monetising holdings in public sector enterprises while raising non-tax revenue.

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Coal India has remained one of the government’s most significant disinvestment assets since its initial public offering in 2010. With the current OFS, the government’s cumulative proceeds from stake sales in the company, including funds raised through the IPO, are expected to reach around Rs 52,000 crore. Earlier stake sales in the miner had already generated close to Rs 47,000 crore for the exchequer over the past 16 years.

The company’s IPO in 2010 was launched at Rs 245 per share and remains one of India’s largest public offerings. Since then, the government has periodically diluted its stake through multiple OFS transactions. In January 2015, it sold a 10% stake in Coal India and raised approximately Rs 22,000 crore at Rs 358 per share. Subsequent stake sales in 2018 and 2023 also generated substantial proceeds through market offerings.

The latest OFS involves the sale of a 2% stake in Coal India at the floor price of Rs 412 per share. Market participants are closely watching the retail bidding phase as investor appetite for public sector stocks remains influenced by broader market conditions, commodity trends and expectations around the government’s ongoing disinvestment roadmap.

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