Coal India OFS Oversubscribed for Non-Retail Investors

• Institutional investors bid for 11.52 crore shares Over 2x the base size at ₹417.62, making Coal India OFS oversubscribed on day one.

• Government likely to exercise 1% green-shoe option in the OFS for up to 2% stake sale at ₹412 floor price.

• Retail bidding on May 29; expected to raise ₹5,000 crore, second PSU OFS this fiscal after Central Bank of India raised ₹2,266 crore.

 Institutional investors on Wednesday lapped up shares reserved for them in Coal India OFS, with the issue being oversubscribed on day one.

Non-retail or institutional investors put in bids for about 11.52 crore shares or over two times the base issue size for them at an indicative price of ₹417.62 per share till 1410 hours.

Bidding will continue till 1530 hours.

With this massive investor interest, the government is likely to exercise the green-shoe option in the Offer For Sale (OFS).

The government is selling up to 2% stake or over 12.32 crore in Coal India at a floor price of ₹412 a share, which is expected to fetch around ₹5,000 crore to the exchequer. The issue includes a green-shoe option of 1%

Retail investors will bid in the OFS on May 29. May 28 is a market holiday. The floor price of ₹412 per share is at a 10% discount over Tuesday's closing price of ₹458.25 on the BSE.

The sale of up to 2% stake or about 12.32 crore shares at ₹412 apiece would fetch about ₹5,000 crore to the exchequer.

Shares of Coal India were trading at ₹451.50 apiece, down 1.47% over Tuesday's closing on BSE.

This will be the second OFS of a public sector company in the current fiscal year. Last week, the government sold 8.08% stake in Central Bank of India via OFS and raised ₹2,266 crore.

The FY27 Budget has estimated a mop-up of ₹80,000 crore through disinvestment and asset monetisation, more than double the ₹33,837 crore given in the Revised Estimates for FY26.