Coal India OFS 2026: Govt floor price set at ₹412

Coal India shares in focus as OFS details are announced

Shares of Coal India Ltd (CIL) drew attention on Wednesday morning after the government fixed the floor price for its proposed offer for sale (OFS) at ₹412 per share. The floor price implies a discount of about 10% to recent market levels, with the stock cited at ₹458.25 per share at the time of the update. Separately, the floor was described as nearly 10% lower than Coal India’s NSE closing price of ₹455.90. Another reference point cited Coal India’s last close at ₹458.15 on the NSE as of May 26, 2026, making the discount about 10.1%.

The divestment plan is for up to a 2% stake in the state-run miner through a base offer and a green shoe option. Coal India said in an exchange filing that the offer will run on May 27 and May 29, 2026. Markets will be shut on Thursday, May 28, on account of Bakri Id, which splits the OFS across two trading days.

Government plans to divest up to 2% stake

The Government of India plans to divest up to a 2% stake in Coal India through this OFS, according to the exchange filing. The structure includes a base offer of 1% and an additional 1% green shoe option that can be exercised in case of oversubscription. The base offer size is 6.16 crore equity shares, which equals 1% of Coal India’s paid-up equity capital.

If demand is strong, the government has the option to sell an additional 6.16 crore shares. That would take the total offer size to 12.32 crore shares, representing 2% equity. The sale is being carried out through the Ministry of Coal, as noted in the filing.

A post on X by DIPAM Secretary Arunish Chawla also described the OFS as a base offer of 1% of equity with an additional 1% green shoe option, and confirmed the floor price of ₹412 per share.

Floor price set at ₹412 and the discount to market

The floor price is fixed at ₹412 per equity share. This was described as a 10.09% discount to a prevailing Coal India share price of ₹458.25 per share. It was also cited as about a 10% discount to the NSE closing price of ₹455.90, and about 10.1% to the last close of ₹458.15 (as on May 26, 2026).

The presence of multiple market reference prices reflects different observation points, but the consistent message is that the OFS floor is set at roughly a 10% discount to recent levels. For investors, the floor price becomes a key anchor for bids placed during the OFS window on the exchanges.

How the OFS will run across May 27 and May 29

The issue will run on May 27 and May 29, 2026. The OFS will be available to non-retail investors on May 27. Retail investors, eligible employees, and non-retail investors with carry-forward unallotted bids will be able to participate on May 29.

Coal India also clarified the day-wise access clearly. Only non-retail investors could participate on the first day. On the second day, only retail investors and employees can place fresh bids, while certain non-retail investors can revise bids if they carried forward unallotted portions.

Who can bid on T day and what “carry forward” means

Only non-retail investors can place bids on T day, which is May 27. While placing their bids, these investors may indicate their willingness to carry forward un-allotted bids to T+1 day. The stated purpose is allocation in the unsubscribed portion of the retail category.

Non-retail investors who place bids on T day and choose to carry forward un-allotted bids to T+1 day are also allowed to carry forward and revise their bids on T+1 day, as per OFS guidelines. This becomes relevant because the retail and employee bidding is scheduled for May 29.

OFS window timing and exchange mechanism

Coal India said the OFS would take place during trading hours on a separate window of the stock exchanges, commencing at 9:15 am. This separate OFS window is standard for such transactions and is distinct from regular secondary market trades.

The company’s communication emphasised operational clarity around the OFS process, including how non-retail bids may be carried forward and revised on the second day where permitted.

Key facts table

Timeline and investor participation

What the stake sale could mean for the exchequer

One report stated that the disinvestment of up to 2% stake, comprising about 12.32 crore shares at a floor price of ₹412 apiece, would fetch about ₹5,000 crore to the exchequer. This figure is tied to the maximum potential offer size if the green shoe option is fully exercised.

From a market perspective, the near-10% discount embedded in the floor price often becomes the immediate reference point for investor interest during the OFS window. The split between non-retail and retail days, and the carry-forward provision for unallotted non-retail bids, shapes how demand can move between categories.

Conclusion

The Coal India OFS is scheduled over May 27 and May 29, with a market holiday on May 28. The government has set a floor price of ₹412 per share and plans to divest up to 2% stake through a 1% base offer and a 1% green shoe option. Non-retail investors can participate on May 27, while retail investors and eligible employees can bid on May 29, alongside non-retail investors revising carried-forward unallotted bids as permitted under OFS guidelines.