Shares of Coal India Ltd. fell over 6% on Wednesday, May 27, after the government announced an Offer for Sale (OFS) in the company on Tuesday evening, confirming a CNBC-TV18 newsbreak from May 7 in the process.The government plans on selling 1% of the company’s total equity, with an option to sell another 1% stake through the greenshoe option.
Based on the company’s outstanding equity, the government plans on selling 61.6 million shares in Coal India through the OFS process.
At the end of the March quarter, the government had a 63.13% stake in Coal India.Floor price of the OFS has been fixed as ₹412 per share, which is a discount of nearly 10% from the company’s closing price on Tuesday.
At the floor price, the government can mop up ₹2,539 crore through the OFS process.
Coal India’s Offer For Sale for non-retail investors opens on Wednesday, while that for retail investors will open on Friday, as Thursday is a stock market holiday.
Shares of Coal India ended at the day’s low on Tuesday, with losses of 0.5% at ₹455.9. The stock is up 14% so far this year.
