Summary of this article
Coal India shares fell over 6 per cent after the government launched a Rs 5,000 crore OFS
OFS floor price was fixed at Rs 412 per share, nearly 10 per cent below the previous close
Centre plans to sell up to 2 per cent stake in the PSU miner
Coal India share price tanked in early trade on May 27 after the government announced an offer for sale (OFS) to divest up to 2 per cent stake in the state-run miner at a discounted floor price. The Coal India OFS, which opened for non-retail investors on May 27, weighed on investor sentiment as the floor price was set nearly 10 per cent below the previous closing price.
Shares of the Maharatna PSU fell as much as 6.65 per cent to an intraday low of Rs 427.80 on the BSE, as against the previous close of Rs 458.25. However, the stock later recovered some losses and was trading around Rs 447 apiece at 11 AM, down 2.50 per cent. The stock still remained among the top losers on the Nifty 50 index for the day.
The bruising fall in Coal India shares came after the Centre announced plans to sell up to 12.32 crore shares in the company through the OFS route. At the floor price of Rs 412 per share, the issue size could cross Rs 5,000 crore if the oversubscription option is fully used.
Coal India OFS: Why Coal India Share Price Is Falling
The government fixed the Coal India OFS floor price at Rs 412 per share, implying a discount of around 10 per cent from May 26’s closing price of Rs 458.25 on the BSE. The deep discount triggered selling pressure in Coal India stock as investors adjusted positions ahead of the stake sale.
Despite today’s decline, Coal India stock has remained largely positive over the longer term. The stock has gained nearly 12.50 per cent so far in 2026 and delivered over 200 per cent returns over the last five years.
Coal India OFS Details: Government To Sell Up To 2 Per Cent Stake
According to Coal India’s exchange filing, the government, through the Ministry of Coal, plans to sell up to 2 per cent stake in the PSU through the OFS mechanism.
The base offer consists of 6.16 crore equity shares, representing 1 per cent of Coal India’s paid-up equity capital. The government also has a greenshoe option to sell an additional 6.16 crore shares in case of strong investor demand, taking the total offer size to 12.32 crore shares or 2 per cent equity.
The OFS is being conducted through a separate window mechanism on both the NSE and BSE in line with the market regulator Securities and Exchange Board of India’s (Sebi) OFS guidelines.
As of March 31, 2026, the government held more than 63 per cent stake in Coal India.
Coal India OFS Dates And Investor Categories
The Coal India OFS opened for non-retail investors on May 27. Retail investors, eligible employees, and non-retail investors carrying forward unallotted bids can participate on May 29.
The stock market will remain closed on May 28 on account of Bakrid.
Coal India also said that, subject to approval from the competent authority, up to 25,000 equity shares may be reserved for eligible employees. Eligible employees can bid for shares worth up to Rs 5 lakh under the reserved category.
Frequently Asked Questions
Why are investors reacting negatively to the Coal India OFS?
Investors are reacting negatively to the Coal India OFS because the government has set the floor price at Rs 412 per share, nearly 10 per cent below the stock’s previous closing price, raising concerns about short-term selling pressure and dilution in the market.
How much stake is the government selling in Coal India through the OFS?
The government plans to sell up to 12.32 crore shares, equivalent to 2 per cent stake in Coal India. The base offer includes 1 per cent stake, with an option to sell an additional 1 per cent in case of strong demand.
When can retail investors apply for the Coal India OFS?
Retail investors can apply for the Coal India OFS on May 29, while bidding for non-retail investors opened on May 27. The stock market will remain closed on May 28 due to Bakrid.
