New Delhi, May 27: Institutional investors on Wednesday lapped up shares reserved for them in Coal India OFS, with the issue being oversubscribed on day one.
Non-retail or institutional investors put in bids for about 11.52 crore shares or over two times the base issue size for them at an indicative price of Rs 417.62 per share till 1410 hours.
Bidding will continue till 1530 hours.
With this massive investor interest, the government is likely to exercise the green-shoe option in the Offer For Sale (OFS).
The government is selling up to 2 per cent stake or over 12.32 crore in Coal India at a floor price of Rs 412 a share, which is expected to fetch around Rs 5,000 crore to the exchequer. The issue includes a green-shoe option of 1 per cent.
Retail investors will bid in the OFS on May 29. May 28 is a market holiday. The floor price of Rs 412 per share is at a 10 per cent discount over Tuesday's closing price of Rs 458.25 on the BSE.
The sale of up to 2 per cent stake or about 12.32 crore shares at Rs 412 apiece would fetch about Rs 5,000 crore to the exchequer.
Shares of Coal India were trading at Rs 451.50 apiece, down 1.47 per cent over Tuesday's closing on BSE.
This will be the second OFS of a public sector company in the current fiscal year. Last week, the government sold 8.08 per cent stake in Central Bank of India via OFS and raised Rs 2,266 crore.
The FY27 Budget has estimated a mop-up of Rs 80,000 crore through disinvestment and asset monetisation, more than double the Rs 33,837 crore given in the Revised Estimates for FY26.
(Except for the headline, this article has not been edited by FPJ's editorial team and auto-generated from an agency feed.)
