New Delhi — The Government of India has expanded the ongoing Offer for Sale (OFS) of Coal India Limited after exercising the oversubscription option, increasing the total issue size from 1% to 2% of the company’s paid-up equity share capital.
The move was officially communicated through a regulatory filing submitted to both BSE Limited and National Stock Exchange of India Limited on May 27, 2026.
The expanded stake sale reflects strong investor interest in the Maharatna public sector enterprise and forms part of the Government’s ongoing disinvestment and capital market strategy involving major state-owned companies.
Total OFS Size Increased to 123.25 Million Shares
Under the revised structure, the Government, acting through the Ministry of Coal, will now sell up to 123.25 million equity shares of Coal India Limited, representing 2% of the company’s total paid-up equity capital.
The OFS was initially launched with a base issue size of approximately 61.62 million shares, equivalent to a 1% stake sale. However, following robust demand from institutional investors, the Government exercised the oversubscription option to offload an additional 61.62 million shares.
Market analysts noted that the decision to double the OFS size indicates healthy investor appetite for Coal India shares despite ongoing transitions in the global energy sector.
Retail Investors to Participate on May 29
According to the official OFS schedule:
- May 27, 2026 was reserved exclusively for non-retail institutional investors.
- May 29, 2026 has been designated for retail investors, eligible employees, and non-retail investors carrying forward unallotted bids.
The filing further stated that around 10% of the total offer size — approximately 12.32 million shares — has been reserved for retail investors, subject to valid bidding participation.
Additionally, up to 25,000 equity shares have been specifically allocated for eligible employees of the company in accordance with OFS guidelines.
The retail reservation is expected to attract participation from individual investors due to Coal India’s consistent dividend payouts and strong market presence.
Part of Government’s Larger Disinvestment Program
The transaction is being conducted by the Ministry of Coal on behalf of the President of India, which remains the promoter of Coal India Limited.
The OFS aligns with the Government of India’s broader disinvestment agenda aimed at monetizing public sector holdings, improving market liquidity, and generating non-tax revenue for the exchequer.
Over the past several years, the Government has regularly used the OFS mechanism for stake dilution in major public sector enterprises while maintaining majority ownership in strategic sectors.
Coal India’s Strategic Importance
Coal India Limited remains one of the most strategically important public sector enterprises in India and is widely recognized as the world’s largest coal-producing company.
Operating under the administrative control of the Ministry of Coal, the company plays a central role in supporting India’s electricity generation and industrial energy requirements.
Coal India supplies coal primarily to thermal power plants, which continue to account for a significant share of India’s electricity production. Despite the country’s increasing focus on renewable energy, coal remains a critical component of India’s energy mix and energy security strategy.
Investor Sentiment Remains Strong
The OFS has attracted considerable attention from institutional and retail investors alike because of Coal India’s:
- Dominant market position
- Stable cash flows
- High dividend payouts
- Strong government backing
- Strategic importance in India’s energy sector
Market participants are expected to closely monitor subscription levels and pricing trends during the retail bidding window on May 29.
Analysts believe the successful expansion of the OFS could further strengthen confidence in government-led disinvestment initiatives and reinforce investor interest in India’s public sector enterprises.
