The Authorities of India will divest as much as a 2% stake in Coal India Restricted (CIL) by means of an Provide for Sale (OFS) scheduled over Could 27 and Could 29, in accordance with a inventory alternate submitting by the state-owned mining firm on Tuesday. The federal government has mounted the ground worth at ₹412 per fairness share, almost 10% decrease than Coal India’s closing worth of ₹455.90 on the NSE, providing buyers a possibility to purchase shares at a reduction.
Beneath the proposed OFS, the federal government plans to promote 6.16 crore fairness shares, representing 1% of Coal India’s complete paid-up fairness capital, as the bottom challenge measurement. It has additionally retained a greenshoe choice to promote a further 6.16 crore shares in case of oversubscription. If totally exercised, the full supply measurement will improve to 12.32 crore shares, equal to a 2% stake sale.
The share sale course of will start on Could 27 for non-retail buyers, whereas retail buyers, eligible staff and non-retail buyers carrying ahead unallotted bids can take part on Could 29.
The timing of the difficulty comes amid a shortened buying and selling week, as Indian inventory markets will stay closed on Could 28 on account of Bakri-Eid. The OFS might be executed by means of a separate window mechanism on each the BSE and Nationwide Inventory Trade, in step with Securities and Trade Board of India (SEBI) laws governing OFS transactions.
Coal India additionally stated that as much as 25,000 fairness shares could also be provided to eligible staff, topic to obligatory approvals. Eligible staff can place bids price as much as ₹5 lakh underneath the worker reservation class.
The Authorities of India presently stays Coal India’s promoter and continues its divestment technique by means of stake gross sales in public sector enterprises. The most recent OFS comes at a time when Coal India has reported steady monetary and operational efficiency.
For the quarter ended March, Coal India posted a 12% year-on-year improve in consolidated revenue after tax to ₹10,908 crore, whereas income from operations rose 6% to ₹46,490 crore. The efficiency was supported by improved realizations and development in different earnings streams.
The corporate’s board additionally introduced a closing dividend of ₹5.25 per share for FY26, topic to shareholder approval on the upcoming Annual Basic Assembly (AGM).
The federal government stated Coal India continues to stay a gorgeous long-term funding alternative, backed by robust operational efficiency, steady earnings and a constant dividend payout observe report. Market members will now intently observe investor response to the OFS, particularly given the discounted pricing and Coal India’s place as considered one of India’s largest dividend-paying public sector firms.
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