The government's Offer for Sale (OFS) in Coal India Limited received an overwhelming investor response on the first day, with the issue getting oversubscribed 8.14 times. According to reports from Department of Investment and Public Asset Management (DIPAM), the offer received enthusiastic response from investors and will be allocated on price priority basis. The strong demand indicates significant investor confidence in the state-run coal company, with the DIPAM Secretary confirming the oversubscription through an official post on X.
The government has decided to exercise the entire green shoe option, which allows the seller to increase the number of shares being sold if investor demand remains strong. As reported by DIPAM, retail investors and employees will get to bid on Friday 29th May 2026. The DIPAM Secretary confirmed this decision, stating that the government has decided to exercise the entire green shoe option to maximize the fundraising potential of the offering.
With the exercise of the full green shoe option, the total offer size now stands at 123,254,566 equity shares, representing 2 per cent of Coal India's total paid-up equity share capital. According to Coal India's stock exchange filing, the government had initially proposed to sell 61,627,283 equity shares as the base offer size, with an additional 61,627,283 equity shares available under the oversubscription option. The filing stated that 12,325,458 equity shares, representing 10 per cent of the offer, would be available for retail investors on day 1, subject to receipt of valid bids, while up to 25,000 equity shares would be offered to eligible employees in accordance with OFS guidelines.
The base cut-off price for the OFS is ₹450.10, which means this is the minimum price at which investors can bid for shares under the Offer for Sale. As reported by Coal India, the green shoe cut-off price is at ₹447.05, which refers to the additional shares that can be sold if there is excess demand in the OFS. This pricing structure helps the government raise more funds if investor demand remains strong throughout the offering period.
Coal India shares closed at ₹463.05 per share on Wednesday on the National Stock Exchange, according to Moneycontrol reports. The strong market performance reflects positive investor sentiment toward the state-run coal company ahead of the OFS. The company's stock price movement indicates market confidence in Coal India's fundamentals and growth prospects, with the oversubscription indicating strong institutional and retail demand for the state-run coal major.
