Coal India OFS subscribed over 8 times on day 1; govt to exercise greenshoe option

New Delhi: As investors flocked to the government’s stake sale in Coal India Ltd, the offer for sale (OFS) attracted bids worth more than eight times the shares offered on the first day, signaling confidence in the state-owned miner’s diversification drive.

According to investment and public asset management (Dipam) secretary Arunish Chawla, the issue was subscribed 8.14 times on Wednesday.

“The government has decided to implement the entire green shoe option,” said Chawla, who has been tasked with giving the hike. ₹80,000 crore was achieved through disinvestment and asset monetization in FY27, he said in a post on social media platform X. Retail investors and employees will be able to bid on Friday, he added.

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.

The government aims to collect so far ₹5,000 crore by selling its shares in Coal India.

The floor price of OFS, at which existing shareholders or promoters dispose of their shares without issuing new shares, was determined as follows: ₹412 per share.

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 Wednesday’s closing price ₹463.60 per share, valuing the government holding at approx. ₹1.80 trillion, the total market capitalization of Coal India is approx. ₹2.85 trillion.

According to former coal minister Amrit Lal Meena, this strong response also reflects investors’ confidence in Coal India’s diversification plans into renewable energy and critical minerals.

“Therefore, there is great confidence in its market position among investors. The company has a bright future, given its large-scale diversification plans into various sectors, including renewable energy and critical minerals,” he said. Mint.

Coal India continues to be a major company generating revenue 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.