Coal India OFS Opens at 10% Discount

The Government of India has initiated a major disinvestment move by launching an Offer for Sale (OFS) in Coal India Limited, offering investors an opportunity to buy shares at a discounted floor price of ₹412 per share. Under the OFS, the Centre plans to sell a 1% equity stake, along with an additional 1% greenshoe option, taking the total offer size to nearly 12.32 crore shares. If fully subscribed, the transaction could mobilize close to ₹5,000 crore for the government. The floor price has been fixed at a discount of about 10% to Coal India’s previous market closing price, making the offer attractive for both institutional and retail investors. As per SEBI guidelines, non-retail investors will participate on the first day, while retail investors will get their bidding window on the following day. The stake sale forms part of the Centre’s ongoing disinvestment programme aimed at unlocking value from public sector enterprises while maintaining operational strength. Despite the stake dilution, the government will continue to remain the majority shareholder in Coal India. Market participants are closely watching the OFS as Coal India remains one of India’s strongest cash-generating PSUs, known for consistent dividend payouts, healthy profitability, and its critical role in ensuring the country’s energy security. With India’s energy demand continuing to rise, Coal India remains a key pillar of the nation’s power ecosystem. Analysts believe the discounted offer could attract strong investor interest, especially from long-term investors seeking exposure to a dividend-rich public sector company. The OFS also reflects the government’s broader strategy of balancing fiscal resource generation with continued support for strategically important state-owned enterprises.