The government's offer for sale (OFS) of Coal India shares received a strong response from institutional investors on day 1. With the issue being over-subscribed, the government will exercise the green-shoe option for an additional 1.5% on 2nd of June.
The offer for Sale in Coal India Limited received response from non-retail investors today. The issue was subscribed 3.46 times the base size. Govt has decided to exercise the green shoe option. Retail investors get to bid tomorrow, said Department of Investment and Public Asset Management in a statement to ANI.
The centre, which holds 66.13% stake in Coal India, is likely to raise around ₹4,200 crore from the OFS by selling around 18.48 crore shares or 3% stake at a floor price of ₹225 per share.
However, Coal India stock has been under pressure for the past few trading sessions. Today it closed 4.6% lower at ₹230.
The Coal India OFS is the first large disinvestment from the centre for this financial year. The government's divestment taget for FY24 is ₹51,000 crore.
On Tuesday, Coal India announced a 8% hike in non-coking coal prices, making high grade coal costly. This will give the company a projected incremental revenue of over ₹2700 crore in FY24.