The government has proposed to sell up to 9.24 crore shares representing 1.50% of the total paid-up equity as a base offer with an option to additionally sell 9.24 shares or 1.5% of the company equity in the event of oversubscription.
The OFS will open for subscription for non-retail investors on Thursday, while retail investors can subscribe on Friday. The floor price for the offer has been fixed as ₹225, a 6.7% discount to Wednesday’s closing price of ₹241.20. About 10% of the offer will be reserved for retail investors.
Non-institutional investors who place bids can flag their willingness to carry forward their un-allotted bids to Friday for allocation to them in case the retail category stays unsubscribed.
Shares of Coal India have rallied 25% in the last one year and 63% in the past two years, compared to Nifty’s gain of 12% and 19% during these periods.
The Union Budget for 2023-24 has set a disinvestment target at ₹51,000 crore for FY24, lower than the previous financial year. Earlier, the estimates for FY23 were revised to ₹50,000 crore from the earlier target of ₹65,000 crore.
This is the first big-ticket sale from the government so far in FY24 against the disinvestment target of ₹51,000 crore.The government currently holds a 66.13% stake in Coal India.
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