The Government of India has announced plans to divest up to a 2% stake in state-owned Coal India Limited (CIL) via an Offer for Sale (OFS). The share sale is scheduled to open for institutional investors on May 27, 2026, with retail investors and eligible employees participating on May 29, 2026.
The floor price for the OFS has been fixed at ₹412 per equity share. This represents a significant discount of nearly 10% compared to Coal India's closing price of ₹455.90 on the National Stock Exchange (NSE) on the day prior to the announcement, offering an attractive opportunity for investors.
OFS Details and Structure
Initially, the government intends to sell 6.16 crore equity shares, which constitutes 1% of Coal India's total paid-up equity capital, as the base issue size. A greenshoe option has also been retained, allowing for the sale of an additional 6.16 crore shares if the offer is oversubscribed. If fully exercised, the total divestment will reach 12.32 crore shares, equivalent to a 2% stake.
The OFS will be executed through a separate window mechanism on both the BSE and NSE, adhering to Securities and Exchange Board of India (SEBI) regulations for such transactions. Up to 25,000 equity shares may also be offered to eligible employees, with bids capped at ₹5 lakh under the employee reservation category, subject to necessary approvals.
Timing Amid Strong Performance
This divestment comes at a time when Coal India has demonstrated robust financial and operational performance. For the quarter ended March, the company reported a 12% year-on-year increase in consolidated profit after tax, reaching ₹10,908 crore. Revenue from operations also saw a healthy rise of 6% to ₹46,490 crore, driven by improved realizations and growth in other income streams.
Furthermore, Coal India's board announced a final dividend of ₹5.25 per share for the fiscal year 2026, pending shareholder approval at the upcoming Annual General Meeting (AGM). The government views Coal India as an attractive long-term investment, citing its strong operational performance, stable earnings, and consistent dividend payout history.
Market participants are expected to closely monitor investor response, particularly given the discounted pricing and Coal India's status as one of India's largest dividend-paying public sector companies. The OFS timeline also navigates a shortened trading week, with Indian stock markets closed on May 28 for Bakri-Eid.