Source NDTV profit
NEW DELHI — The Indian government is set to launch a massive disinvestment drive, offloading up to a 2% stake in state-run miner Coal India Limited (CIL) through an Offer for Sale (OFS). The transaction is designed to raise up to ₹5,000 crore, providing a major push to the Centre’s ambitious asset monetisation pipeline.
According to latest exchange filings, the much-anticipated equity sale will kick off on Wednesday.
Key Details of the Coal India OFS
The disinvestment structure uses a baseline target coupled with an options clause to maximize institutional and retail demand:
Base Issue Size: The government plans to offload a baseline of shares worth ₹2,500 crore.
Green Shoe Option: An additional over-allotment (green shoe) option of ₹2,500 crore is built into the framework, bringing the total potential transaction value to ₹5,000 crore.
Floor Price: The floor price for the share sale has been fixed at ₹412 per share, which represents a discount of roughly 10% relative to recent trading averages.
Total Volume: If fully subscribed, including the green shoe portion, up to 6.2 crore shares of the Maharatna coal mining giant will change hands.
What is an OFS? An Offer for Sale is a simplified, rapid stock exchange mechanism allowing promoters or major shareholders of listed companies to reduce their equity stakes securely within a 48-hour trading window.
Part of a Larger ₹80,000-Crore Fiscal Blueprint
This transaction represents the first major milestone in a phased disinvestment pipeline mapped out for the fiscal year. The Ministry of Finance, via the Department of Investment and Public Asset Management (DIPAM), has established a 正式 target of ₹80,000 crore through capital receipts and strategic asset monetization.
The Centre is reportedly timing its market entries to balance its funding requirements with stable domestic liquidity conditions. Coal India is the first of several public sector enterprises (PSUs) lined up for staggered stake dilutions. Other high-profile candidates undergoing valuation reviews for upcoming quarters include:
Life Insurance Corporation of India (LIC): Anticipated for a structural stake dilution by the second quarter.
Indian Overseas Bank (IOB): Under evaluation for public float extension.
Indian Railway Finance Corporation (IRFC): Planned follow-on tranches to optimize public sector borrowing allocations.
Market analysts anticipate strong institutional appetite for the Coal India offering, given the stock’s healthy history of high dividend yields and its central role in anchoring domestic energy security. Non-retail bidding is scheduled to open on Wednesday, followed by retail investor allocations the following day.
You can watch an overview of the initial market speculation leading up to this official announcement in this CNBC-TV18 report, which correctly outlined the government’s imminent plans for the state-run miner.
