Shares of Coal India experienced a significant decline, dropping up to 6.4 percent in early trading on Wednesday, making it the largest loser on the Nifty 50 index. The stock fell to a low of ₹428.40 on the National Stock Exchange (NSE), compared to its previous closing price of ₹458.15. As of 9:24 AM, the shares were trading at ₹435.90, reflecting a 5 percent decrease.
The downturn in investor sentiment followed the Indian government’s announcement that it would divest up to 2 percent of its stake in the state-owned miner through an offer-for-sale (OFS) mechanism. According to the government’s statement on Tuesday, the plan involves selling up to 6.162 crore shares, which accounts for 1 percent of Coal India’s paid-up equity capital. There is also a green shoe option to offload an additional 6.162 crore shares. This stake sale will be managed by the Ministry of Coal and is set to take place via the OFS window on both the BSE and NSE, in compliance with the regulations established by the Securities and Exchange Board of India (SEBI).
The OFS process will occur over two trading sessions, with the first day, May 27, open only to non-retail investors. Retail investors and eligible employees can participate on May 29, alongside non-retail investors who wish to carry forward any unallocated bids from the first day.
The decline in the stock comes despite a strong performance reported by Coal India for the March quarter. The company recorded an 11.1 percent year-on-year increase in consolidated net profit, amounting to ₹10,839.18 crore for Q4FY25, up from ₹9,751.64 crore during the same period last year. Revenue from operations rose to ₹46,490.03 crore, compared to ₹43,961.56 crore in the previous year.
Published on May 27, 2026.
