New Delhi : The Ministry of Coal has officially announced an Offer for Sale (OFS) of equity shares in Coal India Limited as part of the Government of India’s ongoing disinvestment program aimed at improving public shareholding and enhancing market liquidity in major public sector enterprises.
According to the official notice, the OFS is being undertaken by the President of India in the capacity of promoter shareholder and will be executed through the stock exchange mechanism in compliance with regulations issued by the Securities and Exchange Board of India (SEBI) and stock exchange guidelines.
Government Plans to Divest Up to 2% Stake
Under the proposed transaction, the government plans to sell up to 61,627,283 equity shares, representing approximately 1% of the paid-up equity share capital of Coal India Limited.
In addition, the government has retained an oversubscription option to sell another 1% stake, potentially increasing the total divestment to 2% of the company’s equity capital.
Each equity share carries a face value of ₹10, while the floor price for the OFS has been fixed at ₹412 per share.
The government clarified that no discount would be offered to retail investors or employees participating in the issue.
OFS Schedule and Bidding Timeline
The stake sale will be conducted through both the BSE Limited and the National Stock Exchange of India platforms over two trading sessions.
The bidding schedule is as follows:
- May 27, 2026 (T Day): Non-retail investors can place bids
- May 29, 2026 (T+1 Day): Retail investors, eligible employees, and carry-forward bids from non-retail investors can participate
The bidding window on both days will remain open from 9:15 AM to 3:30 PM.
Allocation Structure and Investor Reservation
The allocation process will follow SEBI-prescribed OFS guidelines, including price-priority allocation and proportionate distribution in the event of oversubscription.
As part of the structure:
- 10% of the total offer size has been reserved for retail investors
- At least 25% of the non-retail allocation will be reserved for mutual funds and insurance companies, subject to valid bids at or above the floor price
- Eligible employees of Coal India Limited will have access to a separate reservation of up to 25,000 shares under specified eligibility conditions
The government stated that the allocation mechanism is designed to ensure broad-based participation and transparent price discovery.
Merchant Bankers and Settlement Details
The OFS transaction is being managed by a consortium of leading merchant bankers and brokers, including:
- Axis Capital
- ICICI Securities
- JM Financial Institutional Securities
- Kotak Securities
- SBICAP Securities
Kotak Securities will also act as the settlement broker for the issue, while trade settlement operations will be handled through NSE Clearing Limited.
Part of Government’s Strategic Disinvestment Program
The proposed stake sale is part of the Government of India’s broader strategic disinvestment and capital market monetization strategy. Officials stated that the initiative is intended to improve liquidity in public sector companies, strengthen market participation, and optimize government holdings while maintaining transparent and market-driven valuation practices.
The OFS route has increasingly become a preferred mechanism for government stake sales due to its efficiency, regulatory oversight, and transparent bidding process.
About Coal India Limited
Coal India Limited is the world’s largest coal-producing company and a Maharatna public sector enterprise under the Government of India. The company plays a critical role in India’s energy sector by supplying coal to power plants, steel producers, cement manufacturers, and industrial consumers across the country.
The company is listed on both the BSE Limited and the National Stock Exchange of India and remains one of India’s largest publicly traded state-owned enterprises by market capitalization.
