Centre to offload 3% stake in Coal India via OFS route

The government plans to sell approximately 9.24 crore shares, equivalent to about a 1.5% stake, through the Offer for Sale (OFS). If there is oversubscription, an additional 1.5% stake will also be available for sale, as per media reports.

The Offer for Sale (OFS) will be conducted on June 1-2 through a dedicated window on the stock exchanges. Non-retail investors will have the opportunity to place their bids on June 1 (T day), while retail investors can participate in the OFS on June 2 (T+1).

The floor price for the offer has been set at Rs 225, which represents a discount of approximately 7% compared to the last traded price.

At present, the Government of India holds approximately 66% of the company's stake, with the remaining stake being held by public shareholders.

During the offer for sale, the allocation of shares will be made at or above the floor price on a price priority basis, except for retail investors. Retail investors will have the option to bid at or above the cut-off price.

Approximately 10% of the offer is set aside for retail investors. In the event that the retail category is undersubscribed, the unallocated shares will be allotted to non-retail investors who have opted to carry forward their unallocated bids to the T+1 day.

Furthermore, around 5% of the offer size is reserved for employees. These shares will be allotted to employees at the cut-off price determined in the retail category of the offer.

A minimum of 25% of the offer shares are allocated for mutual funds and insurance companies.

If there is undersubscription in this category, the remaining shares will be made available to other bidders in the non-retail category.