Coal India's ₹5,000 crore offer for sale opened today for retail investors, with the government selling 6.16 crore equity shares representing 1% of total paid-up equity capital. According to reports from The Economic Times, the government retains an oversubscription option to sell an additional 6.16 crore shares, taking the total potential offer size to 12.32 crore shares or 2% equity. At the floor price of ₹412 per share, this represents a significant discount from current market levels, with the stock closing more than 1% higher at ₹463.05 on Wednesday. The Department of Investment and Public Asset Management (DIPAM) announced that the offer will open for non-retail investors on May 27, while retail investors and eligible employees can participate on May 29.
Institutional investors demonstrated exceptional interest on the first day, bidding for ₹19,000 crore worth of shares at an indicative price of ₹436.69 per share. As reported by The Economic Times, non-retail investors subscribed to more than 45.15 crore shares or over 8 times the reserved portion, significantly higher than the floor price. The offer for sale opened for non-retail investors on May 27, while retail investors and eligible employees can participate today. Following the announcement, shares of Coal India witnessed selling pressure in the market, reflecting investor reaction to the disinvestment exercise.
Coal India's shares experienced volatility, crashing more than 6% in early trading before recovering to close more than 1% higher. According to The Economic Times, analysts view this as a decent opportunity for long-term investment, with brokerages maintaining positive outlooks. PL Capital has a 'Buy' rating with a target price of ₹520, implying 12% upside potential, while SBI Securities highlighted the company's strong cash-generating position backed by India's energy demand. DIPAM highlighted Coal India's strong operational and financial performance, consistent dividend payouts and robust cash generation, describing the PSU major as a compelling long-term investment opportunity for investors.
The offer includes 10% reservation for retail investors (approximately 1.23 crore shares) and 25,000 shares for eligible employees under the employee reservation category, with a maximum bid limit of ₹5 lakh. As reported by The Economic Times, the government currently owns more than 63% stake in the PSU company as of March 31, 2026, with the share sale conducted through separate windows on BSE and NSE. The OFS will be conducted through a separate window of the stock exchanges in accordance with SEBI guidelines.
The company is positioned for growth with coal requirement projected at 906 million tonnes in FY27, up from 815 million tonnes in FY26. According to The Economic Times, analysts expect 7.5% YoY growth in coal volume with e-auction premium at 47.5% FSA prices. Despite ESG concerns, Coal India's diversification into cleaner energy and achievable management targets are bolstering confidence in its long-term growth story. Coal India remains one of the country's largest dividend-paying public sector enterprises and plays a crucial role in meeting India's energy demand.
