Government Launches Coal India Offer for Sale
The Indian government has initiated an Offer for Sale (OFS) for shares of state-owned Coal India Ltd. (CIL), setting a floor price of Rs 412 per share. This represents a significant 10.09 percent discount compared to the prevailing market price of Rs 458.25 per share. The OFS is scheduled across two trading days in late May 2026, with the stock drawing considerable market attention.
OFS Details: Price, Stake, and Bidding Schedule
The government aims to divest up to 1 percent of Coal India's total paid-up equity share capital, equating to 61,627,283 shares, as the base offer size. This initial sale took place on May 27, 2026. An option for an additional sale of another 1 percent (61,627,283 equity shares) is available in case of oversubscription, utilizing a separate window on both the BSE and NSE.
On May 27, only non-retail investors were eligible to participate in the bidding. These investors had the option to carry forward any un-allotted bids to the subsequent trading day. Retail investors and employees, alongside non-retail investors who chose to carry forward their bids, were slated to place their bids on May 29, 2026. The stock exchanges remained closed on May 28, 2026, for Bakri Id.
Coal Buffer Assures Supply Amid OFS
Ahead of the OFS, Coal India provided an update on its coal reserves, confirming a robust 168 million tonne (MT) buffer designed to meet summer demand. As of May 23, domestic coal-based power plants held 47.6 MT of coal stock. Concurrently, CIL’s own mine heads maintained a comfortable inventory of 113.5 MT on May 24, marking a 10 percent increase year-on-year. This combined stock is sufficient to cover 19 days of consumption.
Furthermore, approximately 3 MT of coal was awaiting at various transit points, including goods sheds, private washeries, and ports, with another 4 MT in transit via railway rakes. This comprehensive buffer, totaling 168 MT, aims to alleviate any concerns regarding coal supply during the peak demand period, reinforcing the company's operational stability as the OFS proceeds.