Govt aims to collect up to ₹5,000 crore via Coal India share sale
New Delhi: Government aims to collect so far ₹5,000 crore by selling its shares in state-run Coal India Ltd (CIL) to meet the target of disinvestment and monetization of assets. ₹80,000 crore for the current financial year (FY27).
Arunish Chawla, secretary of the Department of Investment and Public Asset Management (DIPAM), said in a post on
The floor price of the offer for sale (OFS), under which existing shareholders or promoters dispose of their shares without issuing new shares, was determined as follows: ₹412 per share, Chawla said.
The government is expected to take action based on the reported base price ₹2,500 crore through sale of underlying 1% stake, proceeds may exceed ₹5,000 crore if the additional green shoe option is fully implemented.
“With its strong operational and financial performance, consistent returns and attractive dividends, CIL continues to offer an attractive long-term investment opportunity,” he said.
In his post, Chawla said that OFS will open on May 27 for non-retail investors and May 29 for retail investors.
OFS is part of the government’s broader investment attraction and public shareholding strategy, which aims to improve market liquidity and increase non-tax revenue through share sales in publicly traded public sector enterprises.
According to data on the DIPAM website, the government currently holds 3.89 billion shares in Coal India, representing a 63.13% stake in the company. Based on previous day’s closing price ₹458.25 per share, valuing the government holding at approx. ₹1.78 trillion, the total market capitalization of Coal India is approx. ₹2.82 trillion.
The CIL stake sale is significant as the government steps up efforts to raise non-tax revenue through share sales and asset monetization amid rising spending commitments and infrastructure spending plans.
The Center has increasingly relied on sales of minority stakes in listed public sector enterprises to meet disinvestment targets after many major strategic sale proposals faced delays.
Coal India continues to be a major revenue-generating PSU for the government through dividends and taxes. The company accounts for more than 80% of domestic coal production and continues to play a critical role in ensuring fuel supply to thermal power plants that contribute to the majority of India’s electricity generation.
Coal India OFS comes just days after the government launched OFS at the Reserve Bank of India, which was subscribed 2.35 times on the first day after it was opened to institutional investors on May 22. The government is using the OFS route more actively this year to generate higher revenues and at the same time develop public stakes in state-run companies.
The strong response to the Reserve Bank of India OFS comes at a time when the government has set an ambitious disinvestment and asset monetization target. ₹80,000 crore for FY27. The government gathered ₹Compared to ₹16,885.56 crore disinvested in FY26. ₹10,163.02 crore in the previous financial year, DIPAM data showed. In addition to income from investment, ₹28,420.49 crore was generated through asset monetization in FY26. There were no receipts for monetization of such assets before FY26.
Significant transactions, including those of IDBI Bank and Life Insurance Corporation of India (LIC), are expected to support revenue mobilization throughout the year.
Currently, the government holds 89.27% stake in the Reserve Bank of India and this stake is expected to fall further after the implementation of the green shoe option in the ongoing OFS.
Mint On May 13, it had informed that the railways ministry plans to dilute 5-10% stake in six listed railway public sector undertakings and another 2-3% stake in another listed company through offer-for-sale transactions in FY27.
