Coal India’s offer for sale (OFS) through the stock exchanges was oversubscribed more than eight times on Wednesday, prompting the government to opt for the green shoe option. The government is selling over 12.32 crore shares, equivalent to up to 2 percent of its stake in Coal India, at a floor price of ₹412 per share, which includes a green shoe option of 1 percent.
According to Arunish Chawla, Secretary of the Department of Investment and Public Asset Management (DIPAM), “The Offer for Sale in Coal India Ltd received enthusiastic responses from investors and was oversubscribed 8.14 times on the first day. Allocation will be on a price priority basis. The government has decided to exercise the entire green shoe option.” Retail investors and employees will be able to bid on May 29, as the following day is a holiday.
Institutional investors showed strong demand, subscribing to more than 45.15 crore shares, which is over eight times the number reserved for them, at an indicative price of ₹436.69 per share—significantly higher than the established floor price. This demand translates to bids amounting to approximately ₹19,000 crore.
The floor price of ₹412 per share is discounted by 10 percent compared to Tuesday’s closing price of ₹458.25 on the BSE. On Wednesday, Coal India’s shares closed at ₹462.90, an increase of 1.01 percent over the previous close on the BSE.
Coal India’s OFS marks the second instance of a public sector company engaging in an OFS this fiscal year. Last week, the government successfully sold an 8.08 percent stake in Central Bank of India through an OFS, raising ₹2,266 crore. The budget for FY27 anticipates raising ₹80,000 crore through disinvestment and asset monetization, more than double the revised estimate of ₹33,837 crore for FY26.
Published on May 27, 2026.
