Coal India OFS Opens With Up To 2% Stake Divestment By Government Of India

The Government of India has launched an Offer for Sale (OFS) in Coal India Limited (CIL), aiming to divest up to 2% stake in the company. The move is part of the government’s ongoing disinvestment strategy and offers investors an opportunity to participate in one of India’s largest public sector enterprises in the coal mining sector.

Coal India is the world’s largest coal producer and plays a critical role in meeting India’s energy demand. The OFS is expected to attract strong participation from institutional as well as retail investors due to the company’s dominant market position, steady cash flows, and attractive dividend profile.

Key highlights of the OFS

• Floor Price: ₹412 per equity share
• Base Offer Size: Up to 6.17 crore equity shares (1% stake)
• Green Shoe Option: Additional 6.17 crore equity shares (1% stake)
• Total Offer Size: Up to 12.33 crore equity shares (2% stake)

OFS schedule
For Non-Retail Investors

• Opening Date: 27 May 2026
• Institutional investors and non-retail bidders can place their bids on the first day of the OFS.
   

For retail investors

• Opening Date: 29 May 2026
• Retail investors will be able to participate on the second trading day of the offer.

Understanding the offer structure

The OFS mechanism allows promoters to sell shares in listed companies through the stock exchange platform in a transparent manner. In this case, the Government of India, being the promoter of Coal India, is offering shares to the market while continuing to remain the majority shareholder.

The floor price of ₹412 per share has been set at a discount to the prevailing market price to encourage investor participation.

Why coal india remains in focus

Coal India continues to remain strategically important for India’s energy ecosystem. Despite the gradual shift toward renewable energy, coal remains a major contributor to the country’s power generation requirements.

Some key strengths of Coal India include:

• Strong production capacity and nationwide operations
• Consistent dividend payouts
• Stable financial performance and cash generation
• Dominant market share in domestic coal production
• Government-backed strategic importance
   

Investor outlook

Market participants will closely track subscription demand across institutional and retail categories. Historically, PSU OFS issues with attractive pricing and strong dividend yields have witnessed healthy participation.

Investors may evaluate the offer based on factors such as valuation comfort, long-term demand outlook for coal, government disinvestment trends, and Coal India’s operational performance.

As India continues to balance economic growth with energy security, Coal India is expected to remain a key player in the country’s core infrastructure and power sectors.