Government Launches Rs 5,000 Crore Coal India OFS at Rs 412 Floor Price – Non-Retail Bidding Opens Today, Retail on 29 May

Coal India OFS: Government sells up to 2% stake (base 1% + 1% greenshoe). Floor price Rs 412 – 10% below CMP of Rs 458. Non-retail bidding 27 May (TODAY), retail 29 May. Q4 FY26 PAT Rs 10,908 crore (+12%).

The Government of India launched the Coal India OFS on 26 May 2026, divesting up to a 2 percent stake in the state-owned miner through a base offer of 1 percent (6,16,27,283 shares) with a 1 percent greenshoe option in case of oversubscription. The floor price for the Coal India OFS is set at Rs 412 per share – approximately 10.1 percent below Coal India’s closing price of Rs 458.15 on NSE on 26 May 2026. Non-retail investor bidding opens TODAY (27 May 2026). Retail investors get their window on 29 May 2026, when coal markets also reopen after the Bakri Id holiday (28 May).

Coal India OFS: All Key Details

• OFS Type: Offer for Sale by the President of India through the Ministry of Coal
• Base Offer: 1% of equity = 6,16,27,283 equity shares = ~Rs 2,539 crore at floor price
• Greenshoe Option: Additional 1% = 6,16,27,283 shares in case of oversubscription
• Total Maximum Dilution: 2% of equity = 12,32,54,566 shares = ~Rs 5,078 crore at floor price
• Floor Price: Rs 412 per share (~10.1% discount to CMP of Rs 458.15 on 26 May NSE close)
• Non-Retail Bidding: TODAY 27 May 2026 (T-Day)
• Retail Bidding: 29 May 2026 (T+1 Day – markets reopen after Bakri Id holiday)
• Employee Reservation: Up to 25,000 equity shares reserved for eligible Coal India employees
• Government Stake Pre-OFS: 63.13% as of 31 March 2026
• Government Stake Post-OFS (fully subscribed): ~61.13%

Why the Government Is Selling Coal India Shares

The this stake sale is part of the government’s FY27 divestment target of Rs 80,000 crore – approximately 135 percent higher than the revised FY26 divestment estimate of Rs 33,837 crore. The government has been active on the divestment front in FY27: the 8 percent Central Bank of India OFS (non-retail subscribed 2.35 times) was a recent success, and IOB and IRFC stakes were divested in earlier transactions. Coal India, with its strong operational performance and consistent dividend track record, is among the most investor-friendly PSU OFS candidates.

Coal India’s Q4 FY26 results support the OFS case: consolidated PAT grew 12 percent year on year to Rs 10,908 crore, revenue from operations rose 6 percent to Rs 46,490 crore, and the board announced a final dividend of Rs 5.25 per share for FY26. The stock’s dividend yield at Rs 412 (floor price) makes the OFS attractive for institutional income investors.

• Q4 FY26 PAT: Rs 10,908 crore (+12% YoY)
• Q4 FY26 Revenue: Rs 46,490 crore (+6% YoY)
• Final Dividend FY26: Rs 5.25 per share (board recommended, pending AGM approval)
• FY27 Divestment Target: Rs 80,000 crore (total across all PSUs – Coal India OFS part of this pipeline)

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How to Apply for Coal India OFS

• Non-retail investors (TODAY 27 May): Place bids through your broker’s OFS window at or above the floor price of Rs 412. Institutional investors, mutual funds, insurance companies and FPIs can bid today.
• Retail investors (29 May): Apply through your broker’s OFS window on 29 May 2026 (after the Bakri Id holiday on 28 May). Maximum retail investment: up to Rs 2 lakh. Retail investors receive a 5% discount on the cut-off price discovered in non-retail category.
• Eligible employees (29 May): Coal India employees can bid on 29 May for up to 25,000 shares at the employee allotment price.

Disclaimer: This article is for informational and educational purposes only. Nothing in this article constitutes investment advice, a recommendation to buy or sell securities, or a solicitation of any offer to buy or sell securities. Univest is a SEBI-registered research analyst (INH000014019). Readers should conduct their own research and consult a SEBI-registered investment advisor before making any investment decisions. Past performance of any stock or sector is not indicative of future results. Investments in equity markets are subject to market risks.

FAQs on Coal India OFS

What is the floor price and schedule for the Coal India share sale?

Ans. Coal India OFS floor price is Rs 412 per share – approximately 10.1% below the 26 May NSE close of Rs 458.15. Non-retail investor bidding is TODAY (27 May 2026). Retail investor bidding is on 29 May 2026 (after the Bakri Id market holiday on 28 May). The government is divesting a base offer of 1% with 1% greenshoe option – total up to 2% stake.

How much is the government raising in the Coal India OFS?

Ans. At the floor price of Rs 412, the The base offer raises approximately Rs 2,539 crore. If the greenshoe option is exercised on full subscription, total proceeds are approximately Rs 5,078 crore. This is part of the government’s Rs 80,000 crore FY27 divestment target. Government stake reduces from 63.13% to approximately 61.13% post-OFS.

What are Coal India Q4 FY26 results?

Ans. Coal India Q4 FY26 consolidated PAT was Rs 10,908 crore (+12% YoY). Revenue from operations rose 6% YoY to Rs 46,490 crore. Board recommended a final dividend of Rs 5.25 per share for FY26, pending AGM approval. Strong results support the case for the OFS at floor price Rs 412.