Coal India OFS 2026: ₹412 floor price for 2% stake

Government announces stake sale in Coal India

The central government has announced an offer for sale (OFS) in Coal India Limited (CIL) to raise funds for the exchequer. The proposed transaction involves selling up to a 2% stake in the state-run coal miner. Coal India is described as the country’s largest coal producer in the information shared. The move is part of the government’s broader disinvestment exercise mentioned in the report.

Floor price set at ₹412, nearly 10% discount

The government has fixed the OFS floor price at ₹412 per share. This price is nearly 10% lower than the prevailing market price cited in the reports. Coal India shares closed at ₹458.25 on the BSE on Tuesday, up 0.25% from the previous close. A separate data point in the material also cites Coal India’s last close on the NSE at ₹458.15 on May 26, 2026, putting the discount at nearly 10.1%.

OFS structure: 1% base offer plus 1% green shoe

The stake sale comprises a base offer of 1% equity and an additional 1% green shoe option in case of oversubscription. The green shoe mechanism allows the government to sell more shares if demand is higher than the base offer size. This structure is explicitly stated in the announcement details.

Subscription dates for non-retail and retail investors

As per the schedule, the OFS will open for non-retail (institutional and other non-retail) investors on May 27. Retail investors can place bids on May 29. These dates were repeated across the information shared, including references to the Department of Investment and Public Asset Management (DIPAM).

Share quantity and expected fundraising

The proposed sale covers up to about 12.32 crore shares at ₹412 per share. Based on this, the transaction is expected to fetch around ₹5,000 crore for the exchequer. One section also breaks down the size by legs of the OFS: the base issue is valued at about ₹2,539 crore at the floor price, and if the green shoe is exercised fully, the total size could rise to around ₹5,078 crore.

DIPAM secretary’s statement on the OFS

The announcement was communicated on social media platform X by DIPAM Secretary Arunish Chawla. The post stated that the Government of India is announcing an OFS in Coal India with a base offer of 1% equity and an additional 1% green shoe option in case of oversubscription, and that the floor price is fixed at ₹412 per share. The same material also carried a comment attributed to Chawla that Coal India has shown strong operational and financial performance, consistent returns and attractive dividends.

Employee reservation mentioned under OFS guidelines

The details released in the provided material also note that up to 25,000 equity shares may be offered to eligible employees under OFS guidelines. This is presented as an additional element within the overall OFS framework.

How the market is viewing the discount and timing

The floor price being set below the last traded price implies a discount for buyers relative to the immediate market reference. The closing price references in the shared material are ₹458.25 on the BSE (Tuesday close) and ₹458.15 on the NSE (May 26, 2026 close). The discount is repeatedly described as about 10%.

Separately, the material includes a headline about Coal India shares falling 3% after a report that the government was likely to sell a ₹10,000-crore stake via OFS, and mentions market sources indicating a phased pipeline of OFS transactions across public sector enterprises. However, the government’s announced Coal India OFS size cited in the same compilation is around ₹5,000 crore, with a base leg and a green shoe option.

Disinvestment context and fiscal targets cited

The compilation also includes a reference to the FY27 Budget estimate of raising ₹80,000 crore through disinvestment and asset monetisation, compared with ₹33,837 crore in the Revised Estimates for FY26. This places the Coal India OFS within a broader set of monetisation and disinvestment efforts referenced in the report.

Key facts table

Why the OFS matters for investors and the government

For investors, the main point in this transaction is the floor price set at ₹412 per share, which is below the last cited market closing levels. The split across non-retail and retail dates is standard for OFS processes and sets a clear window for participation. For the government, the expected mobilisation of around ₹5,000 crore is positioned as part of a wider disinvestment and asset monetisation plan referenced in the report.

Coal India is also described as the second public sector company to undergo an OFS in the current financial year, indicating more such transactions could be part of the year’s divestment calendar as per the narrative provided.

Conclusion

The government’s Coal India OFS offers up to a 2% stake at a ₹412 floor price, with the non-retail window opening on May 27 and the retail window on May 29. The base offer and green shoe structure targets around ₹5,000 crore in proceeds, depending on subscription and green shoe exercise. The next key event for investors will be the opening of bidding as per the published schedule.