Shares of state-owned Coal India Ltd. saw a significant dip of 7% in early trading on Wednesday, May 27, falling to Rs 427.80 apiece on the BSE. This downturn occurred as the government initiated its Offer for Sale (OFS) at a discounted price of Rs 412 per share, representing a 10% reduction from Tuesday's closing price. Despite recovering some losses, the stock remained down 4.78% at Rs 436.35 by 9:23 AM.
OFS Details and Schedule
The government, holding a 63.13% stake in Coal India as of March 31, 2026, aims to divest up to 61,627,283 shares, constituting 1% of the company's total paid-up equity capital, as its base offer. An additional 1% may be sold if the initial offer is oversubscribed. The OFS is scheduled for May 27 and May 29, 2026.
Non-retail investors were permitted to place their bids on Wednesday, May 27. These investors also have the option to carry forward any un-allotted bids to the following bidding day. Retail investors, employees, and non-retail investors carrying forward bids will be able to participate on Friday, May 29, following Thursday's exchange holiday.
Analyst Outlook and Supply Assurance
Despite the share volatility, brokerage firm Morgan Stanley has maintained an 'Equal weight' rating on Coal India stock, keeping its target price unchanged at Rs 420 per share. Analysts anticipate near-term volatility for the scrip.
Ahead of the OFS, Coal India sought to allay concerns regarding potential supply issues, announcing a substantial 168 million tonne (mt) coal buffer to meet summer demand. As of May 23, coal stocks at domestic coal-based power plants stood at 47.6 mt. Furthermore, the company reported a comfortable inventory level of 113.5 mt at its own mine heads on May 24, marking a 10% increase year-on-year.