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Business News/ Markets / Stock Markets/ Coal India OFS: Non-retail portion over-subscribed; govt to exercise green shoe option

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Coal India OFS: Non-retail portion over-subscribed; govt to exercise green shoe option

1 min read 01 Jun 2023, 04:51 PM IST Join us

Dhanya Nagasundaram ( with inputs from Deutsche Welle )

Government's offer-for-sale for up to 3% stake in Coal India oversubscribed by non-retail investors with bids for 345.72% of the offer size reserved for them.

The government's offer-for-sale (OFS) for up to 3% stake in Coal India got over-subscribed by non-retail investors on Thursday.

As against 8.31 crore shares of offer, investors have put in bids for 28.7 crore shares, representing 345.72% of the offer size reserved for them, at 15:30 IST.

The government is selling more than 18.48 crore shares, or 3% of the Public Sector Undertakings (PSU) coal producer, in the two-day OFS at a floor price of ₹225 per share. In the event of over-subscription, a green-shoe option of 1.5% is included in the sale.

Coal India shares plunge as Centre likely to offload stake via OFS on Thursday

The retail investor auction will start on Friday. The first stake sale by a PSU in the current fiscal year will be for Coal India. The OFS has opened today and it will remain open for subscribed till Friday, June 2.

A 3% share, if fully subscribed, would net the government more than ₹4,000 crore. The government will go closer to reaching the ₹51,000-crore disinvestment objective set for the current fiscal by selling stakes in Coal India.

Cola India shares had significant sell-off pressure in the morning trade, which led to the continuation of the decline for a fourth session. On Thursday, the intraday drop in the price of Coal India's shares was approximately 4.80%. Today, the price of the shares opened lower and reached an intraday low of ₹229.55 per share on the NSE.

Since Tuesday's trading, Coal India's shares have been under pressure as the PSU stock has made an offer to sell its shares for a reduced price of ₹225 per.

Also Read: Why Coal India shares are falling for fourth day in a row — explained

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