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Coal India OFS draws strong institutional demand, bids worth Rs 19,000 crore received on Day 1

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Coal India OFS draws strong institutional demand, bids worth Rs 19,000 crore received on Day 1

Institutional investors put in bids worth around Rs 19,000 crore for Coal India shares on the first day of the government’s offer for sale (OFS) on Wednesday, PTI reported.The government is selling up to a 2 per cent stake, or over 12.32 crore shares, in Coal India at a floor price of Rs 412 per share. The issue includes a 1 per cent green-shoe option. Retail investors can bid on May 29.According to exchange data, non-retail or institutional investors subscribed to more than 45.15 crore shares — over eight times the portion reserved for them — at an indicative price of Rs 436.69 per share, significantly above the floor price.At the indicative price, the bids are valued at around Rs 19,000 crore.The strong response has increased the likelihood of the government exercising the green-shoe option in the OFS.The floor price of Rs 412 per share was fixed at about a 10 per cent discount to Coal India’s Tuesday closing price of Rs 458.25 on the BSE.Coal India shares closed at Rs 462.90 on Wednesday, up 1.01 per cent from the previous close on the BSE.This is the second OFS by the government in the current financial year. Last week, the Centre sold an 8.08 per cent stake in Central Bank of India through an OFS and raised Rs 2,266 crore.In the FY27 Budget, the government has projected Rs 80,000 crore from disinvestment and asset monetisation, more than double the revised estimate of Rs 33,837 crore for FY26.



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