The government is proposing to sell up to 9.24 billion shares, equivalent to 1.50% of the total paid-up shares, as a basic offering, and 9.24 billion shares or 1.5% of treasury stock in the case of oversubscription. There is also an option to sell additional items.
OFS will begin accepting subscriptions for non-retail investors on Thursday, and retail investors will be able to subscribe on Friday. The floor price of the offer is fixed at ₹225, a 6.7% discount from Wednesday’s closing price of ₹241.20. About 10% of the offer will be reserved for private investors.
Non-institutional investors bidding may indicate their intention to allocate their unallocated bids forward to Friday in case the retail category remains unregistered.
Coal India’s shares have risen 25% over the past year and 63% over the past two years, while Nifty’s shares have risen 12% and 19% over the same period.
The Union Budget for 2023-24 sets the target of investment reduction for FY24 at Rs 510 crore, lower than the previous year. Prior to this, the estimate for FY2023 was revised from the original target of INR 650 crore to INR 50 crore.
This will be the first high-value sale by the government so far in FY2024 against its investment cut target of Rs 51 crore. The government currently holds a 66.13% stake in Coal India.
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