Coal India's Employee-Oriented OFS to Begin From June 21; 9.2 Million Shares Up for Government Sale

According to a stock exchange filing, Coal India has announced that the employee Offer for Sale (OFS) will be available for a period starting from June 21, 2023, to June 23, 2023. During this time, the government will sell up to 92.44 lakh shares or a 0.15 per cent stake in Coal India to its employees at a price of Rs 226.10 per share.

As part of the share sale offer, eligible employees of CIL will have the opportunity to acquire 92,44,092 equity shares, which represents 0.15 per cent of the total paid-up equity share capital of the company. Each equity share will be offered at a price of Rs 226.10. This share sale is estimated to generate approximately Rs 20,000 crore in revenue for the government.

On the BSE, the closing price of Coal India shares stood at Rs 227.30 each, reflecting a decrease of 0.48 per cent compared to the previous closing price. The employee Offer for Sale (OFS) comes after the government's recent secondary market share sale in Coal India earlier this month.

Through a stake sale to institutional and retail investors in state-owned Coal India, the government successfully raised Rs 4,185 crore by selling a 3 per cent stake at a floor price of Rs 225 per share. Following the Offer for Sale (OFS), the government's ownership of the coal producer has decreased to 63.13 per cent.

During the current fiscal year, the government has raised Rs 4,235 crore through stake sales in public sector undertakings (PSUs). The target for disinvestment for the entire fiscal year has been set at Rs 51,000 crore.