Government to Sell Up to 2% Stake in Coal India via Offer for Sale, Establishes Floor Price at Rs 412 per Share

The Indian government is set to raise around Rs 5,000 crore by divesting up to a 2% stake in Coal India through an Offer for Sale (OFS). The floor price for the sale has been established at Rs 412 per share, which is nearly 10% lower than the current market price. This decision comes after a successful OFS conducted by the Central Bank of India, indicating potential investor interest in state-owned enterprises.

Coal India, a major player in the coal mining sector, has been a consistent contributor to the governments disinvestment strategy aimed at generating revenue and enhancing financial sustainability. The divestment of stake in Coal India is part of a broader effort by the government to offload shares in various public undertakings, thereby mobilizing resources to support fiscal initiatives.

The OFS will be available to qualified institutional buyers, and retail investors may also have an opportunity to participate if there are shares remaining after the institutional bidding. This move could also reflect the governments ongoing commitment to reducing its holdings in non-strategic sectors, thus aligning with market-driven economic policies.

Investors will be watching closely to gauge market reaction to this offer as it unfolds.