Coal India OFS: Govt to sell 2% at ₹412 floor

What Coal India has confirmed

Coal India Limited (CIL) has confirmed a fresh Offer for Sale (OFS) in which the Government of India will divest up to a 2% stake. The proposed transaction is scheduled over May 27 and May 29, as per the company’s filing to the stock exchanges.

The OFS is structured as a base offer and an oversubscription option. In the base offer, the government proposes to sell 6.16 crore equity shares, which represents 1% of Coal India’s total paid-up equity capital. If the greenshoe option is exercised due to oversubscription, the government can sell an additional 6.16 crore shares, taking the total to 12.32 crore shares or 2% of equity.

Coal India said the OFS will open first for non-retail investors on May 27. Retail investors, eligible employees, and non-retail investors carrying forward unallotted bids can participate on May 29.

Floor price and discount to market

The floor price for the OFS has been set at ₹412 per equity share. Coal India stated this represents about a 10% discount to the prevailing market price at the time of the announcement.

The discount is also reflected against the stock’s recent closes cited in the updates. Coal India closed at ₹455.90 on the NSE on May 26. Another update cited a close of ₹458.25 on the BSE on Tuesday, up 0.25% from the previous close. A separate disclosure put Coal India’s last closing price at ₹458.15 on the NSE on May 26, 2026, implying a discount of nearly 10.1% at the ₹412 floor.

Deal size: base offer and greenshoe structure

The proposed OFS has been described with a base issue size of ₹2,500 crore, with an additional ₹2,500 crore possible through a green shoe option. Taken together, up to ₹5,000 crore worth of shares could change hands if the oversubscription option is fully used.

In a more detailed estimate, the base offer size was stated at approximately ₹2,539 crore at the floor price, with the fully exercised OFS size around ₹5,078 crore. These figures are derived from applying the ₹412 floor to the indicated share quantities.

The DIPAM Secretary Arunish Chawla also posted on X that the Government of India announced an OFS in Coal India with a base offer of 1% and an additional 1% greenshoe option in case of oversubscription, with the floor price fixed at ₹412 per share.

Who can bid and when

The OFS is split across two trading days.

Non-retail investors can bid on May 27. On May 29, retail investors can participate, along with eligible employees and non-retail investors who carry forward unallotted bids from the first day.

This structure is commonly used in OFS transactions to separate institutional price discovery from the retail and employee participation window, and the filing explicitly lays out the market access for each category.

Employee portion: limited shares and value cap

Coal India also indicated that up to 25,000 equity shares may be offered to eligible employees, subject to necessary approvals.

The exchange filing further noted that eligible employees may apply for equity shares amounting up to ₹5,00,000, in accordance with OFS guidelines and subject to approval from the competent authority. The employee portion is small in volume compared with the overall offer size, but it is specifically called out as part of the OFS framework.

Key facts at a glance

Market context: what this means for investors

A floor price set at a visible discount to the recent closing price is one of the main investor-relevant details in any OFS. Here, the ₹412 floor has been positioned as roughly 10% below recent market prices cited around the mid-₹450s.

The overall supply is also clearly defined. A base offer of 6.16 crore shares and a potential increase to 12.32 crore shares under the greenshoe option gives investors a sense of the maximum selling pressure that could emerge across the two OFS days. Because the offer is split between non-retail and retail windows, trading activity can differ across the two sessions depending on institutional demand and the extent of any carry-forward unallotted bids.

Background: earlier OFS references in the updates

The information set also referenced earlier OFS transactions in Coal India with different sizes and prices. In one instance, the government offered over 8.31 crore shares to institutional investors on a Thursday and received bids for 28.76 crore shares, or 3.46 times. At an indicative price of ₹226.12 a share, those institutional bids were worth ₹6,500 crore.

Another reference described a two-day OFS where the government was selling over 18.48 crore shares, or 3%, at a floor price of ₹225 a share, including a green-shoe option of 1.5% in case of over-subscription. The same set of details said 1.84 crore equity shares were reserved for retail allocation, subject to valid bids, as part of an offer on June 02.

A separate note stated the government would offload about 9.24 crore shares representing about 1.5% through an OFS, with an additional 1.5% in case of oversubscription, conducted over June 1-2 through a separate window on the stock exchanges, and a floor price fixed at ₹225, nearly 7% below the last traded price.

What to watch next

The immediate milestones are the OFS bidding windows on May 27 and May 29 and the level of subscription, especially whether the greenshoe option is exercised. Investors will also watch how the market price behaves relative to the ₹412 floor, given the cited closes around ₹455.90 on the NSE and ₹458.25 on the BSE in the run-up to the announcement.

Coal India’s filing sets out the structure, dates, and price floor, while the DIPAM Secretary’s statement reiterates the base plus greenshoe format. The next concrete disclosures are expected around subscription details and allocations after the OFS windows conclude.