Coal India's OFS Subscribed By 417%, Centre To Get Over Rs 4,000 Crore

On Friday, the government's sale of shares in Coal India through an offer for sale (OFS) garnered significant interest from institutional as well as retail investors. 

During the two-day OFS, the government sold 18.48 crore shares, representing a 3 per cent stake in Coal India. The union ministry of coal had earlier announced a floor price of Rs 225 per share for the OFS. At this floor price, the total value of the offer amounted to over Rs 4,100 crore. 

On Friday, retail investors bid for more than 2.58 crore shares of Coal India, while institutional investors submitted bids for 5.12 crore shares. The institutional investors had already placed bids for over 28.76 crore shares on Thursday. 

In addition to the initial offer, an equivalent amount of shares will be offered on Friday due to oversubscription. The coal ministry stated that up to 5 per cent of the total offer may be allocated to employees, with each employee being eligible for up to 2,00,000 shares. In the event of undersubscription in the employee portion, the total allotment to an employee will not exceed 5,00,000 shares. 

The OFS in Coal India marks the government's first stake sale of a public sector undertaking in the current fiscal year. Currently, the government holds a 66.13 per cent stake in CIL. This stake sale in Coal India will contribute towards the government's disinvestment target of Rs 51,000 crore for the current fiscal year.