Government to offload 3% stake in Coal India via OFS route

The government proposes to offload 3 per cent stake in Coal India Limited (CIL) through the offer for sale (OFS) route. The offer will open on June 1 for non-retail investors, while retail investors can bid for it on June 2.

The divestment of Centre’s 3 per cent equity also includes a Green Shoe option of 1.5 per cent. The size of the OFS is around Rs 4,000 crore, and its floor price is set at Rs 225 per share.

Also Read: PM Modi hails economic growth figures 2022-23, says they show resilience

This is at a discount of nearly 7 per cent from Coal India’s current market price. The proposal is to offload 9.24 crore shares amounting to a stake of 1.5 per cent in the coal producer.

Besides, there will be a green shoe option for selling an equal amount of stake in case of over subscription, CIL said in a regulatory filing.

Under the OFS route, promoters in public companies can sell their shares and reduce their holdings in a transparent manner through the bidding platform for the exchanges.