Coal India OFS Opens May 27: Government Sells 2% Stake at ₹412 Floor Price

The Indian government opened an offer for sale (OFS) in Coal India on May 27, 2026, selling up to 2% of its stake at ₹412 per share. The floor price sits 10% below the previous close of ₹458.15 on the NSE. The sale is expected to raise ₹5,000 crore for the exchequer as part of India’s broader disinvestment strategy targeting ₹80,000 crore in FY27.

OFS Structure and Timeline

The government plans to offload 6.16 crore shares (1% stake) as the base offer, with an additional 1% green shoe option if oversubscribed. This brings the total potential sale to 12.32 crore shares or 2% equity. Non-retail investors bid on May 27, while retail investors and eligible employees participate on May 29. Indian markets closed on May 28 for Bakri-Eid, creating a two-day bidding window.

Why the Discount Matters

The ₹412 floor price represents a 10% discount to Coal India’s ₹458.15 closing price on the NSE. Government officials said the discount is designed to encourage investor participation. Retail investors can bid for shares worth up to ₹5 lakh, while up to 25,000 shares may go to eligible Coal India employees.

Stock Performance and Meyka Rating

Coal India shares fell 3% to ₹444.35 on May 27 when the OFS opened, though they recovered from an earlier 6.5% drop. Meyka rates the stock a B+ with a “Buy” recommendation. The 12-month price forecast stands at ₹516.55, implying 16% upside from the OFS floor price. Coal India’s March quarter profit rose 12% year-on-year to ₹10,908 crore, with revenue up 6% to ₹46,490 crore.

Government’s Disinvestment Push

Coal India is the second PSU divestment in FY27. Last week, the government sold 8.08% of Central Bank of India and raised ₹2,266 crore. The FY27 Union Budget targets ₹80,000 crore from disinvestment and asset monetisation—more than double the ₹33,837 crore achieved in FY26. The government remains Coal India’s majority shareholder and continues to operate the miner under the Ministry of Coal.

Final Thoughts

Coal India’s OFS offers a 10% discount entry point for retail investors during a strong operational period. With Meyka rating the stock B+ and the 12-month target at ₹516.55, the data suggests limited downside risk from current levels.

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