Coal India OFS 2026: 2% Stake Sale at Rs 412

What the Coal India OFS is about

The Government of India has launched an offer for sale (OFS) in Coal India Limited to divest up to a 2 percent stake in the Maharatna PSU. The transaction is aimed at raising nearly ₹5,000 crore for the exchequer. The OFS uses a base offer of 1 percent equity and includes an additional 1 percent greenshoe option that can be exercised if demand is strong. The floor price has been set at ₹412 per share, positioning the sale at a discount to the prior market price. Coal India’s OFS follows the standard route where existing shareholders or the promoter sell shares on the exchange without issuing new shares. The President of India, acting through the Ministry of Coal, is the selling shareholder.

Key dates: Non-retail first, retail and employees next

The OFS opened for non-retail investors on 27 May 2026. Retail investors and eligible employees can participate on 29 May 2026. Markets are closed on 28 May 2026 for the Bakri Id holiday, and the retail window follows when trading resumes. The OFS runs across two trading sessions with these categories split by day. Non-retail investors with unallotted bids can carry forward those bids to 29 May and revise them on that day. Bidding is done through the OFS window on BSE and NSE during regular market hours, starting 9:15 am.

Floor price and the discount to market

The government has fixed the floor price at ₹412 per share. Reports cited this as roughly a 10 percent discount to the previous close, including references to ₹458.15 (NSE close on 26 May 2026) and ₹455.90 in some market updates for the same date. One report also described the floor as implying an 11 percent discount versus Tuesday’s closing price of ₹458.15. Either way, the pricing sets the OFS meaningfully below where the stock was trading immediately before the offer. The discount is a key variable for investors assessing participation, especially as prices can adjust once the sale opens.

Offer size: 1% base plus 1% greenshoe

Under the proposed sale, the government is initially offering 6.16 crore equity shares, representing 1 percent of Coal India’s paid-up equity capital. The additional 1 percent greenshoe option allows another 6.16 crore shares to be sold if the offer is oversubscribed. If fully exercised, the total OFS size becomes 12.32 crore shares, or 2 percent of the company’s equity. DIPAM Secretary Arunish Chawla posted on X that the OFS includes the base offer and the greenshoe option, with the floor price fixed at ₹412 per share. In a later update, Chawla said the issue was subscribed 8.14 times on the first day and that the government decided to exercise the entire greenshoe option.

Day-1 demand: Oversubscription and bid levels

The first day, which was reserved for non-retail investors, saw a strong response. The OFS drew bids worth about ₹19,000 crore, with demand reported at over eight times the shares on offer. Subscription was reported at 8.14 times on Wednesday, according to the DIPAM secretary. Bid data also reflected mixed price signals within the non-retail window. One market update noted a non-institutional investor bid at an indicative price of ₹436.70, which was well above the floor price. Another update pegged an indicative price at ₹413.68 per share.

Stock movement during the OFS launch

Coal India’s share price reacted as the sale opened. One report said the stock dropped more than 6 percent in morning trade on the day non-retail bidding began. Another market update said shares fell 1.34 percent to ₹452.10 after the OFS was launched. These moves were framed in the context of the stake sale being offered at a discount to the prevailing market price. For investors, the discount and the near-term price action often interact, since secondary market prices can adjust toward the OFS pricing as bids come in.

Allocation and participation rules cited in reports

Out of the total offer size, around 5.54 crore shares were reserved for non-retail investors, while 61.62 lakh shares were earmarked for retail investors, according to one report. Retail participation is scheduled for 29 May 2026, and a separate window is also available to eligible employees on the same day. A participation guide included a maximum retail investment limit of up to ₹2 lakh. It also stated that Coal India employees could bid for up to 25,000 shares at the employee allotment price.

Retail pricing: What has been stated

Some investor guides said retail investors receive a 5 percent discount on the cut-off price discovered in the non-retail category. Another report stated that no additional retail discount has been offered and that all investors, including retail participants bidding on 29 May, access shares at the same floor price. These are not identical descriptions of the retail mechanics around this OFS. Investors typically rely on the exchange filing and broker OFS window terms for the final operational details applicable to their orders. The common point across reports is that retail participation opens on 29 May.

What officials and market participants have said

DIPAM Secretary Arunish Chawla publicly confirmed the OFS structure, the ₹412 floor price, and the greenshoe option. He also stated that the government decided to exercise the entire greenshoe option after the first day’s subscription data. Separately, Harshal Dasani, Business Head at INVAsset PMS, said retail participation in the Coal India OFS should be selective, not automatic. The comment reflects a common approach where investors compare OFS terms with broader market conditions and near-term price behaviour. As of March 2026, the government held a 63.13 percent stake in Coal India, as cited in one of the updates.

Key facts at a glance

OFS schedule

Conclusion

The Coal India OFS offers up to 12.32 crore shares through a 1 percent base offer and a 1 percent greenshoe option, at a floor price of ₹412 per share. The non-retail window on 27 May saw heavy demand and an 8.14 times subscription, prompting an update that the greenshoe would be fully exercised. Retail investors and eligible employees get their bidding window on 29 May after the 28 May market holiday. The next key data point for investors will be the final allocation and the outcome of retail and employee participation on Friday.