Coal India shares fell up to 3.5% on Thursday following reports about a potential government stake sale. According to reports from CNBC-TV18, the central government is planning to sell a 3-4% stake in the PSU company for nearly ₹10,000 crore via the offer for sale (OFS) route. The stock declined as much as 2.86% to ₹456.30 on the BSE, with the PSU stock trading 1.75% lower at ₹461.55 at the time of reporting. The government is expected to offer the shares at an attractive discount to the current market price, though neither Coal India nor the Department of Investment and Public Asset Management (DIPAM) have confirmed or denied any such development.
The proposed stake sale would involve 3-4% of Coal India's total equity, translating to approximately ₹10,000 crore based on current market valuations. As reported by CNBC-TV18, the government's approach through the OFS route suggests a structured divestment process rather than a direct sale. The timing of this potential stake sale comes after the company's recent financial results showed a profit surge, indicating strong operational performance that could support investor interest in the government's divestment plans. The stock recently touched its 52-week high of ₹490.90 on April 30, 2026, rebounding 33% from its 52-week low hit on August 28, 2025.
According to the latest shareholding data, foreign investors currently hold more than 8% stake in Coal India. Over 25 lakh retail investors jointly own around 4% stake in the company, reflecting significant retail participation in the PSU's equity. As of the March 2026 quarter, the Government of India held a controlling 63.13% stake in Coal India, while public shareholders owned the remaining 36.87%, including an 11% stake held by Life Insurance Corporation of India and 9.5% by mutual funds. Foreign Portfolio Investors (FPIs) accounted for 8.38% ownership, while around 25.3 lakh retail shareholders collectively held a 3.82% stake in the company.
The 3% decline in Coal India shares on Thursday reflects investor uncertainty about the potential stake sale. However, the stock has demonstrated strong performance with 16% year-to-date gains and 23% growth over the past six months. The mining stock has risen 21% over the past year and delivered flat returns over the last one month. In the past 12 months, Coal India has declared an equity dividend of ₹26.40 per share, including a final dividend of ₹5.25 per equity share for FY26, announced after its Q4 results meeting held on April 27, 2026.
Besides the potential government stake sale, Coal India has been actively pursuing value unlocking initiatives. Earlier this year, the company listed its coking coal arm, Bharat Coking Coal Limited (BCCL), by selling a 10% equity stake for ₹1,071 crore as part of the government's plan to unlock value from public sector companies. The board has given in-principle approval to list two subsidiaries, Mahanadi Coalfields Limited (MCL) and South Eastern Coalfields Limited (SECL). The proposed listings are subject to various regulatory approvals, with the Ministry of Coal urging concrete steps toward listing the two subsidiaries in FY27.
