Coal India shares declined 1.34% to ₹452.10 on the NSE following the government's announcement of a 2% Offer for Sale (OFS) at a discounted floor price of ₹412 per share. According to latest reports, the OFS includes a base offer of 1% equity stake with approximately 6.16 crore equity shares and an additional 1% green shoe option that can be exercised if there is strong investor demand. The floor price represents a significant discount of 8.87% to the prevailing market price, with the government holding a 63.13% stake in Coal India as of March 2026. The President of India, acting through the Ministry of Coal, serves as the selling shareholder.
As of 11:30 AM on May 27, 2026, the non-retail portion of Coal India's OFS had received bids for 1.11 crore shares, translating into 20.17% subscription against the base non-retail offer size of 5.54 crore shares. The indicative price stood at ₹413.68 per share. The OFS opened for non-retail investors on May 27, 2026, while retail investors, eligible employees and non-retail bidders carrying forward unallocated bids will be allowed to participate on May 29, 2026. Out of the total offer, around 5.54 crore shares have been reserved for non-retail investors, while 61.62 lakh shares have been earmarked for retail investors.
The government has been utilizing the OFS route regularly to dilute stakes in public sector companies as part of its broader disinvestment and asset monetisation programme. According to Angel One, the Union Budget for FY27 has set a disinvestment and asset monetisation target of ₹80,000 crore, significantly higher than the revised estimate for FY26. DIPAM Secretary Arunish Chawla confirmed the government's announcement of the OFS in Coal India Limited with the specified base offer and green shoe option structure. The planned OFS provides the government with an opportunity to reduce its stake while allowing institutional and retail investors to participate at a discounted floor price.
Coal India reported strong financial results for Q4 FY26, with consolidated net profit jumping 12.9% to ₹10,839.18 crore on a 5.75% rise in revenue from operations to ₹46,490.03 crore compared to Q4 FY25. The state-run coal miner, which is mainly engaged in mining and production of coal and operates coal washeries, serves major consumers in the power and steel sectors, with additional consumers from cement, fertilizers, and brick kilns. Coal India has built a coal buffer stock of nearly 168 million tonnes to meet rising electricity demand, as reported by The Financial Express, with the company stating that domestic coal-based power plants currently have adequate coal supplies despite the sharp rise in power consumption.
