Coal India Share Sale Oversubscribed, Govt To Receive More Than Rs 4,000 Crore

The government successfully sold 18.48 crore shares in a two-day OFS. Institutional investors placed bids for 28.76 crore shares, while retail buyers bid for 2.58 crore shares

The government currently holds 66.13 per cent of Coal India Limited. ( Image Source :Getty, Coal India )

Coal India share sale witnessed strong demand from both retail and institutional investors, during the two-day offer-for-sale (OFS). The government is expected to receive more than Rs 4,000 crore from the stake sale, according to a report by PTI. In two days, the government offloaded its 18.48 crore shares, representing a 3 per cent stake in Coal India, at a floor price of Rs 225 per share. The institutional investors submitted bids for over 28.76 crore shares, while retail buyers bid for over 2.58 crore shares, the news agency reported adding that on the second day, institutional bidders placed bids for 5.12 crore shares.

This OFS by Coal India marks the first government stake sale of a public sector undertaking in the current fiscal year. The OFS also includes a green-shoe option of 1.5 per cent in case of oversubscription. 

The government currently holds 66.13 per cent of Coal India Limited. The stake sale in Coal India is expected to help the government inch towards the Rs 51,000-crore disinvestment target set for the current fiscal.

Shares of Coal India settled for the day at Rs 230.90 apiece on the BSE, up 0.15 per cent over its previous closing price. 

On Thursday, the government offered over 8.31 crore shares to institutional investors under the offer-for-sale (OFS) but received bids for 28.76 crore shares or 3.46 times, according to Department of Investment and Public Asset Management Secretary Tuhin Kanta Pandey. 

"Offer for Sale in CIL received enthusiastic response from non-retail investors today. The issue was subscribed 3.46 times of the base size. The government has decided to exercise the green shoe option. Retail investors get to bid tomorrow," Department of Investment and Public Asset Management Secretary Tuhin Kanta Pandey tweeted.